Industrial-logistics demand hits 76.5 mn sq ft this year

New Delhi: Demand for industrial and logistics space hit an all-time high in 2025, with leasing volumes rising nearly 19 per cent to 76.5 million square feet across 24 major cities, according to Savills. Savills India data showed manufacturing led leasing activity with a 29 per cent share, followed by third-party logistics firms at 28 per cent and e-commerce players at 12 per cent.

The sector recorded its highest-ever annual absorption, extending its strong post-pandemic growth. In comparison, leasing stood at 64.5 million square feet in the 2024 calendar year.

Tier-I cities drove most of the demand. Eight major markets—Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Delhi-NCR and Pune—saw a 20 per cent rise in leasing to 59.5 million square feet, up from 49.7 million square feet in 2024.

Delhi-NCR emerged as the top performer, with leasing increasing to 13 million square feet from 9.8 million square feet a year earlier.

Leasing in Tier-II and Tier-III cities also grew 14.5 per cent year-on-year to 17 million square feet. Savills India expects both supply and absorption to exceed 80 million square feet next year.