New Delhi, Jan 14 (IANS) Industrial and warehousing demand across the top eight cities in India remained strong last year, witnessing a 16 per cent annual growth at 36.9 million square feet, a report showed on Wednesday.

In 2025, Delhi-NCR led the demand with 24 per cent share, closely followed by Chennai at 22 per cent share. On a quarterly basis, Q4 2025 saw about 10.4 million sq ft of industrial and warehousing demand. Chennai, closely followed by Pune, cumulatively accounted for 56 per cent of the quarterly demand, according to the Colliers India report.

While third party logistics (3PL) players drove overall demand during the year, and accounted for 32 per cent share in overall leasing, demand from engineering and e-commerce segments too gained significant traction.

“A strong performance in the last quarter has propelled the demand for Grade A industrial and warehousing space to around 37 million sq ft in 2025, highest in recent years,” said Vijay Ganesh, Managing Director, Industrial and Logistics Services, Colliers India.

Space uptake was driven by large deals, especially by 3PL firms which accounted for almost one-third of the leasing activity in the year.

“With the government’s continued focus on ramping up manufacturing and logistics infrastructure, industrial and warehousing requirements are likely to scale up over the course of next few years,” Ganesh added.

During 2025, large deals (over 200,000 sq ft) accounted for about 45 per cent of the overall demand.

Delhi-NCR and Chennai each recorded over 8 million sq ft of demand in 2025, collectively contributing over 45 per cent of the leasing activity.

Markets like Pune and Mumbai saw space uptake of around 5 million sq ft each. The demand for Grade A warehouses across these four primary industrial hubs was predominantly driven by 3PL and engineering firms.

“With well-established manufacturing clusters and superior infrastructure connectivity, we expect these markets to cumulatively account for 70-80 per cent of industrial and warehousing demand in 2026 as well,” says Vimal Nadar, National Director and Head, Research, Colliers India.

Last year saw 41.7 million sq ft of new supply, corresponding to a 15 per cent on-year rise and indicates improved developer confidence and an optimistic outlook for the upcoming year, said the report.

—IANS

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