(MENAFN- KNN India) New Delhi, Dec 3 (KNN) Leading commercial real estate and investment management company JLL on Wednesday said that manufacturing has emerged as the dominant force in India's industrial real estate market, with robust growth trajectory positioning it for continued expansion.

"Manufacturing leasing activity has demonstrated exceptional growth, reaching 22.1 million sq. ft in 2024, with projections indicating continued expansion to approximately 33.7 million sq. ft by 2027 in top 8 cities-representing nearly half of India's total industrial and warehousing absorption," JLL said in its report.

The report titled“From Make in India to Made by India: Advanced Manufacturing Real Estate Lifecycle" said that Grade A property demand has experienced substantial growth, rising from 70% in 2019 to 82% in 2024 and reaching 87% through Q3 2025 in top 8 cities.

Sectors such as Auto & Ancillaries, Electronics & White Goods, and Engineering sectors have driven the growth, with demand for customised high-end specifications on the rise.

As of July-September quarter (Q3) of 2025, Pune and Chennai have emerged as the dominant markets among India's eight Tier I cities for manufacturing leasing activity, collectively accounting for 75% of total demand for manufacturing leasing spaces. Other cities like Bengaluru, Mumbai, and NCR are also experiencing rapid growth.

“The seven-fold increase in manufacturing leasing activity between 2020 to 2024 indicates a growing shift of manufacturer's real-estate strategy & decision-making in choosing leased land & building. Grade A facilities are preferred by most manufacturers, given its ability to handle automation, better infrastructure and sustainable ecosystem." said Yogesh Shevade, Head of Industrial and Logistics, India, JLL.

The JLL report noted that manufacturing companies are increasingly adopting lease-first strategies to optimize capital allocation.

As per the report, ready-built and built-to-suit leased facilities provide "capex-light" solutions, enabling manufacturers to redirect financial resources toward core competencies while accessing fully functional, well-equipped facilities.

"Ready-built facilities are gaining market share due to accelerated move-in timelines, with over 76% of ready-built facility requirements concentrated in Pune, Chennai, and NCR markets from 2019 through Q3 2025," it said.

(KNN Bureau)

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