India Industrial And Logistics Leasing Hits Record High

Manufacturing emerged as the largest occupier, accounting for 29 per cent of total leasing activity, followed closely by third-party logistics firms at 28 per cent and e-commerce players at 12 per cent. Savills noted that robust manufacturing activity, expanding supply chains and rising e-commerce penetration continued to underpin demand across the country.

Tier-I cities played a dominant role, with eight major markets — Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Delhi-NCR and Pune — collectively witnessing 20 per cent growth in leasing to 59.5 million square feet in 2025, up from 49.7 million square feet a year earlier. Delhi-NCR remained the top-performing market, with leasing rising to 13 million square feet from 9.8 million square feet in 2024.

Tier-II and Tier-III cities also recorded healthy momentum, with leasing activity growing 14.5 per cent year-on-year to 17 million square feet, compared with 14.8 million square feet in the previous year. These markets included Guwahati, Bhubaneshwar, Patna, Hosur, Coimbatore, Rajpura, Lucknow, Jaipur, Nagpur, Surat, Indore, Kochi, Hubli, Vizag, Belgaum and Anantapur, reflecting the broadening geographic base of industrial and logistics demand.

Looking ahead, Savills India expects the sector’s growth to remain strong, forecasting that both supply and absorption of industrial and logistics spaces will surpass 80 million square feet in the coming year, driven by sustained manufacturing expansion, infrastructure development and supply chain diversification.