Industrial Warehousing Demand Up 22% in Jul-Sep

New Delhi, Oct 6 (PTI) Leasing of industrial and warehousing spaces rose 22 per cent year-on-year in July-September on better demand from the manufacturing sector, e-commerce players and third-party logistics firms, according to Savills.

Real estate consultant Savills India noted that India's industrial and logistics sector recorded its strongest quarter in the third quarter of 2025, with gross absorption rising 21.7 per cent to 21.3 million square feet.

Tier-I cities dominated leasing activities at 17.8 million sq ft (84 per cent share), while Tier-II and III cities added 3.5 million sq ft (16 per cent).

"Demand was primarily fuelled by a surge in manufacturing activity, alongside steady requirements from 3PL and e-commerce occupiers," Savills said.

Tier-I cities include Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Delhi-NCR, and Pune.

Tier-II and Tier-III cities include Guwahati, Bhubaneshwar, Patna, Hosur, Coimbatore, Rajpura, Lucknow, Jaipur, Nagpur, Surat, Indore, Kochi, Hubli, Vizag, Belgaum and Anantapur.

The consultant data showed that the total leasing or absorption for the first nine months of 2025 touched 55.3 million square feet, up 23.4 per cent year-on-year.

New supply grew by 12 per cent year-on-year to 21.6 million sq ft in the July-September period.

For the first nine months, cumulative supply rose 16 per cent to 55 million sq ft.