Archive · 14 Aug 2025
India's Warehouse Demand Surges with Manufacturing Growth
India's warehouses are getting a lot busier!
In the first half of 2025, companies leased 42% more warehouse space than the year before.
The companies making things, like factories, needed the most space.
They took up almost half of all the new warehouse space.
The warehouses themselves are getting better too.
Many of the new warehouses are high-quality, known as Grade A. This shows that businesses are expanding and India is becoming a more important place to make goods.
Warehousing leasing volumes in India surged 42% year-on-year (YoY) in H1 2025, reaching 32.1 million sq ft.
The manufacturing sector led demand, with a 71% YoY growth in space uptake, accounting for 45% of total transactions.
Grade A facilities comprised 63% of leased space, up from 54% a year prior, indicating a focus on higher-quality facilities.
Pan-India stock exceeded 500 million sq ft in H1 2025, with Grade A assets making up 75% of new supply; vacancy decreased to 12.1%.
Mumbai, Pune, and Chennai saw significant growth in transaction volumes, and all cities except Kolkata experienced growth.
- Who
- Manufacturing sector, 3PL firms, and E-commerce companies
- What
- A 42% YoY increase in warehousing leasing volumes across India's top eight markets in H1 2025.
- When
- H1 2025
- Where
- Top eight markets in India, including Mumbai, Pune, and Chennai
- Why
- Due to the rapidly expanding manufacturing and consumption base in India and global realignments.
Market Growth
Demand and Supply
Demand Drivers
Market Growth
Warehousing market recorded significant growth in leasing volumes in H1 2025.
Demand and Supply
The growth is fueled by manufacturing and 3PL companies.
- Leasing Volume Growth (H1 2025)
- 42% YoY
- Total Leasing Volume (H1 2025)
- 32.1 million sq ft
- Manufacturing Sector Growth (H1 2025)
- 71% YoY
- Manufacturing Sector Share of Transactions
- 45%
- Grade A Leased Space
- 63%
- E-commerce Growth
- 61%
Sources
India’s housing market bright spot globally as residential prices rise 7.7%
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