Mumbai, Feb 5 (IANS) The warehousing stock in India reached 610 million square feet in 2025, and more than half of this was premium Grade A space, a report showed on Thursday.

Institutional-backed Grade A assets now account for 38 per cent of quality stock, bringing standardised development, enhanced specifications, and attracting global occupiers, sand the JLL report.

Logistics (3PL) and e-commerce lead storage demand, while light manufacturing, driven by auto, engineering and electronics, is growing, reflecting a shift in occupier profiles.

The top eight tier 1 cities remained dominant, controlling 82 per cent of total stock at 498 million sq. ft., while 14 emerging tier 2 cities hosted 112 million sq. ft. of stock.

As India races toward 850 million sq ft of warehousing stock by 2030, the sector is expected to witness convergence of geographic diversification, institutional investment, and automation integration, transforming basic storage facilities into technology-driven fulfillment ecosystems, said the report.

“We are witnessing broader trends in terms of growth of warehousing in tier 2 cities in addition to tier 1 cities, right now. The big metro cities still dominate with 82 per cent of the market, but what is encouraging is cities like Lucknow and Kochi are absorbing over a million sq. ft each, as consumption demand is expanding rapidly,” said Yogesh Shevade, Head – Logistics and Industrial, India, JLL.

Warehouses are becoming smart thanks to automation growing from barely 10 per cent to three-quarters by 2030 a per industry projection.

While tier 1 cities witnessed a net absorption of 55 million sq. ft. in 2025, tier 2 cities posted a net absorption of 12 million sq. ft., demonstrating occupiers’ interest in expanding deeper into India’s urban demand to optimise operational capabilities.

“In this new era, operational efficiency, sustainability, and advanced automation won’t just be competitive advantages, they will be the fundamental pillars supporting India’s emergence as a global logistics powerhouse,” it added.

—IANS

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