India's Logistics and Industrial Leasing Soars: A Record-Breaking H1 2025
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- September 15, 2025
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India's logistics and industrial real estate sector has truly hit its stride, marking an extraordinary first half of 2025 with gross leasing activity soaring to an unprecedented 30.7 million square feet (MSF). This monumental achievement underscores the vibrant health and immense potential of the country's supply chain infrastructure, positioning India as a global powerhouse in industrial development.
The robust performance in H1 2025 is not merely a number; it's a testament to a confluence of powerful economic tailwinds.
At the forefront is the insatiable demand from India's burgeoning e-commerce sector. Online retail continues its aggressive expansion into Tier 2 and Tier 3 cities, necessitating vast networks of modern warehousing and fulfillment centers to ensure swift and efficient delivery. This relentless pursuit of last-mile efficiency is a primary catalyst for the surge in leasing activity, with major e-commerce giants and their logistics partners actively acquiring strategic spaces.
Equally significant is the role of third-party logistics (3PL) providers, which have emerged as pivotal enablers of growth across various industries.
As businesses increasingly opt to outsource their logistics operations, 3PL firms are aggressively expanding their footprints, seeking large-scale, technologically advanced warehousing facilities. This trend allows enterprises to focus on their core competencies while relying on specialized logistics experts, further fueling the demand for state-of-the-art industrial spaces.
The government's unwavering focus on boosting domestic manufacturing through initiatives like the Production-Linked Incentive (PLI) schemes has also played a crucial role.
These policies are encouraging both domestic and international manufacturers to establish or expand their production bases in India, consequently driving the need for sophisticated factory spaces, storage units, and distribution hubs. Sectors such as electronics, automotive, pharmaceuticals, and consumer durables are significantly contributing to this industrial leasing boom.
Geographically, this growth story is spread across the nation's key economic corridors.
Major cities like the National Capital Region (NCR), Mumbai, Bengaluru, Chennai, Hyderabad, and Pune continue to dominate the leasing landscape, attracting substantial investment due to their strategic connectivity, robust consumer bases, and skilled labor availability. However, the rise of regional hubs and secondary markets is also becoming increasingly evident, as companies look to decentralize their supply chains for greater resilience and quicker market access.
Investor confidence in India's logistics and industrial sector remains exceptionally high.
Both domestic and international funds are actively deploying capital into developing Grade A warehousing parks and industrial facilities, recognizing the long-term growth prospects. The emphasis is on sustainability, automation, and advanced infrastructure, with developers incorporating green building standards and cutting-edge technology to meet the evolving demands of modern businesses.
Looking ahead, the outlook for India's logistics and industrial leasing market appears exceedingly promising.
With continued government support for infrastructure development, the ongoing digital transformation, and the burgeoning consumption power of its vast population, India is set to remain a magnet for investment and innovation in this critical sector. The record-breaking performance in H1 2025 is a strong indicator that the Indian logistics story is just beginning to unfold its full potential.
.Disclaimer: This article was generated in part using artificial intelligence and may contain errors or omissions. The content is provided for informational purposes only and does not constitute professional advice. We makes no representations or warranties regarding its accuracy, completeness, or reliability. Readers are advised to verify the information independently before relying on