India’s warehousing sector has rapidly evolved from fragmented regional operations into a professionally managed, integrated asset class. By 2025, total stock surpassed 610 million sq. ft., with Grade A spaces forming 53% of the supply, a sign of quality upgrades and institutional capital’s growing role. Institutional-backed Grade A assets now account for 38% of quality stock, bringing standardized development, enhanced specifications, and attracting global occupiers. Logistics (3PL) and e-commerce lead storage demand, while light manufacturing, driven by auto, engineering, and electronics, is growing, reflecting a shift in occupier profiles.

“India’s Industrial Real Estate Evolution: Emerging Markets and Tech Integration” was unveiled today by JLL at LogiMAT India 2026 in Mumbai.

Tier II cities post 12 million sq. ft absorption surge despite Big 8 controlling 82% of market

The Top 8 Tier I cities, NCR Delhi, Mumbai, Pune, Bengaluru, Chennai, Hyderabad, Ahmedabad, and Kolkata, remain dominant, controlling 82% of total stock at 498 million sq. ft., while 14 emerging Tier II cities, including Lucknow, Chandigarh – Rajpura, Kochi, and Nagpur, host 112 million sq. ft. of stock. However, while Tier 1 cities witnessed a net absorption of 55 million sq. ft. in 2025, the Tier II cities, posted a net absorption of 12 million sq. ft. in 2025, demonstrating occupiers’ interest in expanding deeper into India’s urban demand to optimize operational capabilities.

“We are witnessing broader trends in terms of growth of warehousing in Tier 2 cities in addition to Tier 1 cities, right now. The stock reached 610 million sq. ft in 2025, and what is remarkable is that more than half of this is now premium Grade A space, 38% of which has witnessed institutional money flowing in and professionalizing the entire industry. The big metro cities still dominate with 82% of the market, but what is encouraging is cities like Lucknow and Kochi are absorbing over a million sq. ft each, as consumption demand is expanding rapidly. Another trend we are witnessing is the technological adaption. Warehouses are becoming smart thanks to automation growing from barely 10% to three-quarters by 2030 a per industry projection. Typically, these investments pay for themselves in just two to three years. When we hit 850 million sq ft by 2030, these will not just be storage buildings anymore—they’ll be part of the smart logistics system powering India’s economy, combining the best of technology, strategic location, and smart capital to compete any major economy in the world.” said Yogesh Shevade, Head – Logistics & Industrial, India, JLL.