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E-commerce Boom Drives 63% Rise in Industrial Leasing Across India
29 Jul
Summary
- Leasing of industrial and warehousing spaces rose 63% in H1 2025
- 3PL and e-commerce sectors drove over 50% of the leasing demand
- Demand for industrial spaces is rising in tier-II cities
In the first half of 2025, India's industrial and warehousing leasing market witnessed a significant 63% increase, reaching a record 27.1 million square feet across eight major cities. This robust growth was primarily driven by the surge in demand from e-commerce players and third-party logistics (3PL) providers, which together accounted for over 50% of the total leasing activity.
The dominance of these two sectors underscores the rapid changes in consumer expectations and supply chain optimization that are reshaping the industrial and logistics landscape in the country. Industry experts predict that the next wave of growth will be defined by premium, sustainable, and tech-enabled facilities that cater to the evolving needs of occupiers.
Notably, the demand for industrial and warehousing spaces is not limited to the major metropolitan areas, as the report also highlights a rise in leasing activity in tier-II cities. This trend reflects the growing importance of these secondary markets in India's industrial and logistics ecosystem, as companies seek to optimize their supply chain networks and reach a wider consumer base.
