Demand for industrial and logistics actual property reached an all-time excessive this yr, with leasing volumes growing almost 19 per cent to 76.5 million sq. ft throughout 24 main cities in India, in keeping with a Savills India report.
The report confirmed that the manufacturing sector leased 29 per cent of areas, adopted by third-party logistics companies at 28 per cent, and e-commerce corporations at 12 per cent.
“India’s Industrial and Logistics sector continued its sturdy post-pandemic progress trajectory in 2025, recording its highest-ever annual absorption of 76.5 million sq ft,” Savills India stated. Within the 2024 calendar yr, leasing of business and logistics actual property stood at 64.5 million sq. ft.
Highest demand cities
Out of the whole leasing this yr, eight tier-I cities —Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Delhi-NCR, and Pune—noticed a 20 per cent progress in leasing to 59.5 million sq. ft this yr, up from 49.7 million sq. ft in 2024.
Delhi-NCR remained the most effective performer, leasing 13 million sq. ft this yr, in comparison with 9.8 million sq. ft in 2024.
Demand in tier 2 and tier 3
Leasing actions in tier-II and tier-III cities grew 14.5 per cent within the 2025 calendar yr to 17 million sq. ft from 14.8 million sq. ft within the previous yr.
These 16 Tier II and Tier III cities are Guwahati, Bhubaneshwar, Patna, Hosur, Coimbatore, Rajpura, Lucknow, Jaipur, Nagpur, Surat, Indore, Kochi, Hubli, Vizag, Belgaum and Anantapur.
Savills India expects each provide and absorption of business and logistics areas to surpass 80 million sq ft subsequent yr.
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