Delhi NCR, Chennai lead as India’s industrial leasing hits record high in 2025: Colliers India

Core Insights - In 2025, India's industrial and warehousing sector showed significant resilience with leasing activity reaching 36.9 million sq ft, a 16% year-on-year growth, driven mainly by large-ticket transactions from Third-Party Logistics (3PL) providers [1] Leasing Activity - Delhi NCR and Chennai were the primary contributors to growth, together accounting for 46% of annual leasing activity [2] - 3PL players held a 32% share of the total Grade A space uptake, while engineering and e-commerce segments collectively made up 35% of the year's demand [3] - Bhiwandi in Mumbai led leasing activity with approximately 4.9 million sq ft of Grade A space uptake, followed by Chakan-Talegaon in Pune and Oragadam in Chennai [3] - In Q4 2025, there was a demand of about 10.4 million sq ft, with Chennai and Pune contributing 56% of this quarterly demand [4] High-Profile Transactions - Notable transactions included Jabil Inc.'s lease of 385,000 sq ft in Pune and DHL's uptake of 380,400 sq ft in Chennai [5] - The e-commerce sector favored large fulfillment centers, with 61% of its quarterly uptake from large-scale deals, while FMCG and retail segments focused on mid-sized deals to enhance hyperlocal delivery services [5] Supply Dynamics - Developers completed 41.7 million sq ft of new space in 2025, a 15% annual increase, with Delhi NCR leading construction activity at 30% of the new supply [7] - Q4 2025 saw a peak in new space entering the market at 13 million sq ft, a 40% increase from the previous year's final quarter, while vacancy levels remained stable at around 16% [8] Market Outlook - Established hubs like Delhi NCR, Chennai, Mumbai, and Pune are expected to continue driving the market, likely accounting for 70-80% of total demand in 2026 [6][9] - The industrial and warehousing landscape in India is poised for sustained expansion, supported by a positive outlook from developers and an increase in large-scale deals [9]