India’s industrial and warehousing sector continued its growth trajectory in 2025, recording an 11% year-on-year rise in demand, according to the latest report by real estate consultancy Colliers. The growth was primarily led by strong activity across Delhi NCR, Chennai, and Mumbai, which together accounted for nearly half of the total leasing volume during the year.
Colliers’ analysis highlighted that robust expansion by third-party logistics (3PL) operators, e-commerce firms, and manufacturing companies has fueled this surge. The implementation of the government’s “Make in India” and Production-Linked Incentive (PLI) schemes, coupled with growing investments in supply chain infrastructure, has further strengthened the industrial real estate market.
Delhi NCR remained the top-performing region, contributing around 25% of the total space absorption, followed by Chennai and Mumbai, which saw steady growth in both new warehousing developments and leasing activity. Tier-II cities such as Pune, Hyderabad, and Ahmedabad also witnessed healthy traction, reflecting India’s shift towards a more decentralized logistics network.
Colliers noted that the sector’s outlook remains positive, supported by rapid infrastructure expansion, rising consumer demand, and increasing preference for Grade-A facilities. The report added that the growing adoption of automation, green warehousing, and multimodal logistics hubs will continue to redefine India’s industrial landscape in the coming years.
