Archive · 25 Dec 2025
India's office and logistics sectors grow
India's office and industrial/logistics sectors had a great year in 2025.
Office space leasing across top cities rose by 6% to 71.5 million square feet, driven by demand from technology and BFSI sectors.
The industrial and logistics sector recorded its highest-ever annual absorption of 76.5 million square feet, an 18.6% increase.
The manufacturing segment was the biggest driver of this growth, followed by third-party logistics (3PL), FMCG, and e-commerce.
Most of this activity happened in Tier 1 cities.
The sectors are expected to grow even more in 2026, with both supply and absorption expected to surpass 80 million sq.
ft.
This growth is driven by factors like supply-chain diversification, rising consumption, and the expansion of organized logistics and office spaces.
India's office space leasing demand rose 6% to 71.5 million square feet in 2025, driven by technology and BFSI sectors.
Office space demand fell in Mumbai and Hyderabad but increased in Bengaluru, Chennai, Delhi-NCR, Pune, and Kolkata.
India's industrial and logistics sector recorded its highest-ever annual absorption of 76.5 million square feet in 2025, marking an 18.6% year-on-year increase.
The manufacturing segment was the strongest demand driver, accounting for 29% of total absorption in 2025, up from 22% in 2024.
Sustained demand from the 3PL segment contributed 28%, while FMCG and FMCD contributed 11%, and retail contributed 6%.
- Who
- India's office and industrial/logistics sectors
- What
- Record absorption in both sectors, with office space leasing at 71.5 million sq. ft. and industrial/logistics at 76.5 million sq. ft. in 2025
- When
- 2025
- Where
- India, with a focus on Tier 1 cities like Delhi-NCR, Pune, and Mumbai for industrial/logistics, and Bengaluru, Chennai, Delhi-NCR, Pune, and Kolkata for office space
- Why
- Proactive government policies, manufacturing segment growth, and sustained demand from 3PL, FMCG, e-commerce sectors for industrial/logistics; technology and BFSI sectors for office space
- 2025 Office Absorption
- 71.5 million square feet
- 2025 Office Growth
- 6%
- Top Office Markets
- Bengaluru, Chennai, Delhi-NCR, Pune, Kolkata
- 2025 Industrial Absorption
- 76.5 million square feet
- 2025 Industrial Growth
- 18.6%
- Manufacturing Segment Contribution
- 22 million sq. ft. (29%)
- 3PL Segment Contribution
- 28%
- E-commerce Sector Contribution
- 12%
- Tier 1 Cities Absorption
- 78%
- Tier 1 Cities Supply
- 82%
- Top Contributing Regions
- Delhi-NCR (17%), Pune (15%), Mumbai (14%)
- 2026 Expected Absorption and Supply
- Over 80 million sq. ft.
Sources
Retail leasing hits record 9 mn sq ft in 2025, set to touch 11 mn in 2026
Office leasing up 6 pc in 2025 across top 7 cities on better demand from corporates
India’s industrial and logistics sector clocks 18.6 pc absorption growth in 2025
Residential realty demand to soften in FY26, commercial demand to grow 5 pc
2026 office leasing trends: Can Bengaluru maintain its lead? Colliers outlines five key drivers
With only a fraction of offices in REITs, India’s market has room to grow: Knight Frank India
How PropTech is going to outrun India’s construction sites - CNBC TV18
Office space leasing demand falls in Hyd