India’s industrial and logistics real estate sector hit a new leasing record in 2025, with activity rising 28% year-on-year to 37 million sq ft in the first nine months, driven by strong demand for Grade-A warehousing and supply chain facilities.

According to CBRE India, Delhi-NCR led the surge with 11.7 msf of leasing, followed by Bengaluru and Hyderabad, together accounting for nearly 60% of total demand. The growth was powered by third-party logistics (3PL) firms, e-commerce expansion, and a broader push toward supply-chain optimisation, underscoring the sector’s growing maturity and alignment with India’s logistics boom.

Mumbai and Kolkata registered space take-up of 4.2 msf and 3.8 msf.

The demand was largely led by the expansion of third-party logistics (3PL) providers and the accelerated deployment of quick commerce, Anshuman Magazine, chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE, said.

“Companies are increasingly focused on supply-chain optimisation and resilience, driving a mandate for sophisticated, high-specification Grade-A assets that support automation and reduce last-mile friction,” he said.

During January-September, the supply addition came in at 23.8 msf, as institutional investor-backed developers continued to expand their footprint, the report, released last week, said. Bengaluru, Chennai, and Mumbai together accounted for 62 percent of the total development completions.

In the third quarter of the year, industrial and logistics leasing reached 10.4 msf and 3PL players accounted for a 40 percent share, followed by e-commerce players at 18 percent and engineering and manufacturing firms at 15 percent.

Domestic players contributed 68 percent to the quarterly leasing, while Europe, Middle East, and Africa (EMEA) region corporates accounted for 14 percent.

Sustained demand from domestic corporates, coupled with robust supply additions in top cities, points to a maturing market that is increasingly aligning with India’s broader logistics and e-commerce growth story, said Ram Chandnani, managing director, advisory & transaction services, India, CBRE.

The momentum is expected to continue as businesses focus on optimising supply chains and expanding their footprints, he said.