Industrial, warehousing space demand rises 29%
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New Delhi: India’s industrial and warehousing real estate market recorded a 29 per cent year-on-year (YoY) rise in demand to 72.5 million sq ft in 2025, marking the strongest growth in the post-pandemic period, according to a report released on Thursday by Knight Frank India.
The report noted that Q4 2025 emerged as the strongest quarter, registering 23.4 million sq ft of transactions during the period.
Grade A facilities continued to remain the preferred choice among occupiers, accounting for 63 per cent of leased space in 2025, slightly higher than 62 per cent in 2024.
Manufacturing occupiers (excluding FMCG and FMCD) remained the largest demand driver, accounting for 47 per cent of total leasing volume. The segment recorded 34 million sq ft of transactions in 2025, reflecting a 55 per cent YoY increase.
The sector’s performance was supported by sustained demand from manufacturing, third-party logistics (3PL), e-commerce and allied sectors, the report said.
Among cities, Pune emerged as the most active market with 16 million sq ft of transactions, registering an 86 per cent YoY growth and accounting for 22 per cent of total leasing volumes. Manufacturing leasing was largely concentrated in Pune and Chennai, which together contributed 51 per cent of manufacturing transactions during the year.
“India will further strengthen its position as a preferred manufacturing and distribution hub,” said Shishir Baijal, International Partner, Chairman and Managing Director of Knight Frank India.
In terms of stock, Mumbai led with a 31 per cent share, followed by National Capital Region at 21 per cent.
