Logistic And Industrial Leasing In India Poised To Cross 60 MSF By Year-End: Report

(MENAFN- IANS) New Delhi, Sep 13 (IANS) The gross logistics and industrial (L&I) leasing is expected to cross 60 million square feet (MSF) by year-end and would set a new benchmark for the sector following strong demand, a report said on Saturday.

"In the first half of 2025 (H1 2025), the growth of leasing across warehousing and industrial segments remains in double-digit with total leasing at 30.7 MSF - a 21.6 per cent increase year-on-year (YoY) and 12.1 per cent higher than H2 2024," Cushman and Wakefield, a real estate services firm, said in a report.

The performance underlines the sector's strong fundamentals, with leasing activity surpassing 50 MSF annually for the last three consecutive years.

With momentum holding strong, gross leasing is expected to cross 60 MSF by year-end, setting a new benchmark for India's Logistics & Industrial market.

According to the report, warehousing remained the dominant driver, accounting for 21.9 MSF of leasing and representing 71.3 per cent, while industrial space contributed 8.8 MSF, making up 28.7 per cent of the total leasing.

From a sectoral perspective, engineering and manufacturing (E&M) led overall leasing with 9.7 MSF, accounting for 32 per cent of total absorption and recording a 37 per cent YoY growth.

This reflects the manufacturing sector's growing role in India's self-reliant economy, aided by infrastructure upgrades and supportive policies. 3PL operators leased 7.4 MSF, representing a 24 per cent share and showcasing stable growth, indicating market maturity after earlier expansion waves, the report noted.

The E-commerce sector recorded the sharpest annual surge, with 158 per cent YoY growth to reach 4.6 MSF and capture a 15 per cent share of total leasing, driven by festive season stocking and last-mile network expansion.

Abhishek Bhutani, Managing Director, Logistics and Industrial Services India, Head- Gujarat, Cushman and Wakefield, said,“H1 performance reinforces how India's logistics and industrial sector has moved beyond cyclical swings to demonstrate structural strength."

The consistency of demand across segments highlights that occupiers are no longer only chasing capacity but also efficiency, location, and long-term value. What stands out is the sharper role of manufacturing and the resurgence of e-commerce, which together are reshaping supply chain strategies, he added.

With strong demand fundamentals, a healthy supply pipeline of 25 MSF of Grade-A warehousing is expected over the next 2–3 years, and supportive policy measures, India's logistics and industrial real estate sector is poised to maintain its upward trajectory through 2025, the report said.

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