India’s Logistics & Industrial Leasing Jumps to 30.7 MSF in H1 2025: Report
Summary
India’s logistics and industrial real estate market recorded robust leasing of 30.7 million square feet (MSF) in H1 2025, up 21.6% year-on-year and 12.1% versus H2 2024, according to Cushman & Wakefield’s H1 2025 Logistics & Industrials Marketbeat Report. This performance keeps the sector on track to surpass 60 MSF for the full year, marking a third straight year of annual leasing above 50 MSF.
Warehousing accounted for the bulk of activity at 21.9 MSF (71.3%), with industrial leasing at 8.8 MSF (28.7%). Engineering & Manufacturing led demand at 9.7 MSF (32%) and grew 37% YoY. Third-party logistics operators took 7.4 MSF (24%), while e-commerce surged 158% YoY to 4.6 MSF (15%) driven by festive stocking and last-mile expansion. Other contributors included Automobiles, FMCG, Retail, Pharmaceuticals and Consumer Durables.
City-level leaders were Mumbai (7.0 MSF, 23% share; +131.3% YoY), Delhi NCR (5.1 MSF, 17%), and Pune (4.5 MSF, 15%). Ahmedabad stood out with the highest YoY growth at 192% (1.7 MSF). Cushman & Wakefield expects a supply pipeline of roughly 25 MSF of Grade-A warehousing over the next 2–3 years and sees manufacturing expansion, deeper e-commerce penetration into smaller cities and wider tech adoption as the main growth drivers.
Key Points
- Gross leasing in H1 2025 reached 30.7 MSF, a 21.6% YoY increase and 12.1% up on H2 2024.
- Warehousing dominated with 21.9 MSF (71.3%); industrial leasing totalled 8.8 MSF (28.7%).
- Engineering & Manufacturing drove demand at 9.7 MSF (32%), rising 37% YoY.
- Third-party logistics operators accounted for 7.4 MSF (24%); e-commerce jumped 158% YoY to 4.6 MSF (15%).
- Top city markets: Mumbai (7.0 MSF, +131.3% YoY), Delhi NCR (5.1 MSF), Pune (4.5 MSF); Ahmedabad posted the highest YoY growth (192%).
- Cushman & Wakefield projects India to cross 60 MSF of leasing in 2025, with ~25 MSF of Grade-A supply expected in the next 2–3 years.
- Growth catalysts include sustained manufacturing expansion, deeper e-commerce penetration into Tier-II/Tier-III cities and greater supply-chain tech adoption.
Context and relevance
The results confirm a structural upswing for India’s logistics real estate rather than a short-term spike. Strong manufacturing-led demand alongside a revived e-commerce stocking cycle is shifting occupier strategy towards larger, Grade-A facilities and more regional distribution hubs. For investors, developers and occupiers this underlines where capacity is being absorbed and where the pipeline is likely to matter most over the next 24–36 months.
Author style
Punchy: This is not just another quarterly stat — it signals market momentum. If you work in logistics, warehousing, property investment or supply-chain strategy, the detail here should influence site selection, capacity planning and capital deployment decisions. Read the numbers; they matter.
Why should I read this?
Quick and blunt: if you care about where demand is actually happening and where rents and deals will follow, this is useful. It tells you which sectors and cities are heating up, where developers will bet on new supply and why manufacturing + e-commerce are reshaping logistics footprints. Saves you a skim through the full report unless you want the spreadsheets.