Business EconomyPosted at: Jan 14 2026 7:59PM


Large-Ticket Deals Power Industrial & Warehousing Leasing to 36.9 Mn Sq Ft in 2025: Colliers

Hyderabad, Jan 14( UNI) India’s industrial and warehousing real estate market recorded its strongest performance in recent years, with 36.9 million sq ft of leasing in 2025, registering a 16% year-on-year growth, according to a report released by Colliers India.
The momentum was largely driven by large-sized transactions, which accounted for 45% of total leasing activity, underlining occupiers’ preference for scalable, Grade A logistics assets, the report revealed.
Delhi NCR and Chennai emerged as the leading markets, together accounting for over 45% of the total leasing volume during the year. Delhi NCR led with a 24% share, followed closely by Chennai at 22%, supported by strong manufacturing clusters and improving infrastructure connectivity, the report said.
Leasing activity gained pace in the final quarter of 2025, with Q4 alone contributing 10.4 million sq ft. Chennai and Pune together made up 56% of the quarterly demand, signalling renewed occupier confidence after a relatively muted third quarter.
From an occupier perspective, Third-Party Logistics (3PL) players continued to dominate demand, accounting for 32% of Grade A space uptake, or nearly 12 million sq ft during the year, it said. Engineering and e-commerce occupiers also remained active, and collectively contributed about 35% of the annual leasing activity.
Large-format warehousing requirements were particularly evident in the e-commerce segment, where 61% of leasing occurred through transactions exceeding 200,000 sq ft, driven by the expansion of fulfilment centres and delivery hubs.
In contrast, FMCG and retail occupiers preferred mid-sized facilities, reflecting the growing adoption of hyperlocal distribution models. At the micro-market level, Bhiwandi (Mumbai) led leasing activity with approximately 4.9 million sq ft of Grade A absorption, followed by Chakan–Talegaon (Pune) and Oragadam (Chennai), each recording over 2.5 million sq ft of demand.
On the supply side, developers remained bullish on long-term prospects. New completions touched 41.7 million sq ft in 2025, marking a 15% annual increase and the highest supply addition in recent years. Commenting on the outlook, Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India, said the government’s sustained push on manufacturing and logistics infrastructure is expected to further boost demand in the coming years.
Meanwhile, Vimal Nadar, National Director & Head of Research, Colliers India, noted that Delhi NCR, Chennai, Mumbai, and Pune are likely to collectively account for 70–80% of industrial and warehousing demand in 2026, driven by strong occupier interest in Grade A assets.
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