Industrial, Logistics Space Leasing Jumps 18.5% Across 24 Cities in Q1 2025: Savills India
Tuesday, 08 April 2025, 12:09 IST
Industrial and logistics space leasing in India grew 18.5% year-on-year in January-March 2025 to 160 lakh square feet across 24 cities, real estate consultancy Savills India said. This is a major rise from 135 lakh square feet in the same period last year, due to growing demand from all sectors.
Tier-I cities led the leasing activity, with 79% of the space being leased from them. They consist of Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Delhi-NCR, and Pune. Tier-II and Tier-III cities contributed a total of 21%, showing increasing demand for up-and-coming markets like Guwahati, Bhubaneshwar, Patna, Hosur, Coimbatore, Lucknow, and others.
Segment-wise, the manufacturing sector dominated the demand, capturing 30% of the rented space. Third-party logistics (3PL) players followed closely at 26%, retail accounted for 12%, e-commerce for 10%, and FMCG & FMCD sectors at 9%.
On the supply front, new supply saw the market grow by 23% with 159 lakh square feet of industrial and logistics space having been added in the first quarter of 2025, against 129 lakh square feet for the same period last year. Tier-I cities accounted for the majority of new supply at 12.4 million square feet (78%), while Tier-II and Tier-III cities provided 3.6 million square feet (22%).
The numbers indicate strong growth in India's industrial and logistics industry, driven by the growth of infrastructure and regionally diversified demand.
Tier-I cities led the leasing activity, with 79% of the space being leased from them. They consist of Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Delhi-NCR, and Pune. Tier-II and Tier-III cities contributed a total of 21%, showing increasing demand for up-and-coming markets like Guwahati, Bhubaneshwar, Patna, Hosur, Coimbatore, Lucknow, and others.
Segment-wise, the manufacturing sector dominated the demand, capturing 30% of the rented space. Third-party logistics (3PL) players followed closely at 26%, retail accounted for 12%, e-commerce for 10%, and FMCG & FMCD sectors at 9%.
On the supply front, new supply saw the market grow by 23% with 159 lakh square feet of industrial and logistics space having been added in the first quarter of 2025, against 129 lakh square feet for the same period last year. Tier-I cities accounted for the majority of new supply at 12.4 million square feet (78%), while Tier-II and Tier-III cities provided 3.6 million square feet (22%).
The numbers indicate strong growth in India's industrial and logistics industry, driven by the growth of infrastructure and regionally diversified demand.
