India industrial and warehousing leasing climbs 15% to 36.8 million sq ft in H1
A new report shows India’s industrial and warehousing leasing rose 15 percent year-on-year to 36.8 million sq ft in the first half, driven by third-party logistics and manufacturing demand.
India’s industrial and warehousing leasing activity rose 15 percent year-on-year to 36.8 million square feet in the first half of the year, according to a recent industry report. The figures point to sustained appetite from occupiers seeking large-scale, modern supply-chain space across the country’s key logistics corridors.
What the report shows
The headline number captures gross absorption across India’s leading industrial and warehousing clusters. Analysts attribute the growth to a combination of factors: expansion by third-party logistics (3PL) operators, fresh commitments from manufacturing tenants, and steady demand from e-commerce and retail supply chains. The H1 tally is being read as evidence that occupier confidence has held up despite global trade headwinds and tighter financing conditions.
Drivers behind the demand
Several themes stand out in the leasing picture for the first half. They include:
- Rising take-up by third-party logistics players serving automotive, consumer goods and pharma customers.
- Manufacturing tenants locking in space near production hubs to shorten lead times.
- E-commerce and quick-commerce operators continuing to build out fulfilment networks in Tier 1 and Tier 2 cities.
Developers have responded by accelerating speculative builds in well-connected micro-markets, particularly along highway corridors and around major ports. Grade-A stock with modern specifications, clear height and truck-dock efficiency is reportedly commanding a premium as occupiers prioritise operational throughput over headline rents.
Outlook and broader context
The leasing momentum comes against a backdrop of wider activity in global logistics. Recent moves by major players — including CMA CGM’s push to acquire a FedEx logistics unit — underline how carriers and freight forwarders are repositioning for supply-chain resilience. For occupiers in India, the H1 numbers suggest that Grade-A warehousing will remain a scarce, strategic asset through the rest of the year, even as developers calibrate new supply against demand. Tenant requirements linked to solar logistics risk planning and project cargo, alongside complex contracts such as large 3PL rollouts for energy operators, illustrate the broadening range of users competing for high-quality space.