Business EconomyPosted at: Dec 16 2025 4:25PM


India's industrial & warehousing remain resilient in 2025

Kolkata, Dec 16 (UNI) India's industrial and warehousing market remained resilient, with cumulative demand across the top eight markets reaching 26.5 million sq ft in the first 9 months of the year, reflecting an 11 percent YoY increase, a research study by Colliers Insight on how Industrial warehousing and investment performed in 2025 and the outlook for 2026 said on Tuesday.
Grade A space uptake stayed at an all-time high, even as global occupiers remained cautious amid ongoing trade uncertainties.
Third-party logistics (3PL) players have continued to dominate leasing activity, accounting for nearly one-third of the warehousing demand.
Simultaneously, e-commerce and engineering players have seen a surge in demand during this period, and this can potentially result in an annual demand of 30-40 million sq ft.
New supply is also likely to remain elevated at 35–40 million sq ft in 2025 and looking upwards in the coming new year.
CEO and MD of Colliers India Badal Yagnik said the segment is poised for another year of strong expansionary growth in 2026, as 3PL players accelerate Grade A space demand across Tier I cities and emerging hubs.
The continued rise of e-commerce and q-commerce will fuel the proliferation of hyperlocal facilities such as micro-fulfilment centers, dark stores, and in-city warehouses, enabling faster and agile deliveries.
Additionally, rising traction in Tier II & III cities will be supported by enhanced regional connectivity through expressways, dedicated freight corridors, industrial corridors, and upcoming Multi-Modal Logistics Parks (MMLPs), that would further expand the country's logistics capabilities.
Overall, the industrial & warehousing segment is likely to see about 30–40 million sq ft of average annual demand over the next few years.
Plug-and-play industrial hubs are becoming the go-to option for occupiers seeking faster setup and minimal groundwork.
With utilities, core infrastructure and compliance-ready units already in place, these parks enable businesses to ramp up operations rapidly.
Additionally flexible layouts, integrated support services and ability to reduce time-to-market will continue to make these facilities a strategic fit for scalable growth in 2026.
Strong policy push and better implementation of flagship programs such as Make in India, the Production-Linked Incentives (PLI) scheme, and Gati Shakti masterplan, are likely to accelerate India's transformation into a competitive manufacturing hub.
This policy momentum stands to benefit occupiers, enabling them to expand at scale —warehousing deals of 200,000 sq ft or more will drive around 40-50 pc of the Grade A space uptake in 2026.
Backed by improving infrastructure, enhanced connectivity and regulatory incentives, 3PL, engineering, and automobile occupiers are particularly expected to opt for larger, future-ready warehouses across key logistics corridors of the country.
As India's infrastructure network continues to expand through new expressways, dedicated freight & industrial corridors and Multi-Modal Logistics Parks, industrial activity will increasingly extend beyond established Tier I cities.
While leading markets will still command a significant share of demand and supply, Tier II & III cities are expected to gain far greater prominence in 2026 as enhanced connectivity and logistics efficiency open new avenues for regional growth.
Rising freight movement along key infrastructure corridors will spur demand for modern warehouses, logistics parks, and manufacturing facilities across the country.
Hyperlocal distribution models to amplify warehousing requirements: The surge in e-commerce and rapid-delivery platforms will accelerate the need for compact, neighborhood-centric storage solutions.
Retailers and logistics operators are expected to expand their footprint in localities closer to high-demand neighborhoods to ensure faster delivery timelines.
At the same time, dark stores built specifically for quick pick-up & dispatch, will play a pivotal role in optimizing last-mile efficiencies throughout 2026. These shifts will reshape urban supply chains, prompting greater investment in localized warehousing formats and agile fulfilment centers.
Traction in EV sales and ancillary industries catalyze demand: As EV manufacturing ramps up, requirements for specialized facilities like battery storage, component manufacturing, electronics, and service logistics will intensify, thereby contributing significantly to the annual warehousing demand over the next few years.
Institutional grade assets to pave the way for future REITs: In 2026, the demand for ESG compliant and technology adept Grade A warehouses & logistics parks is set to rise further. With developers adopting global standards in design, sustainability, and automation, the segment is expected to draw deeper institutional capital and accelerate the inclusion of premium warehouses in future REITs/InvITs.
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