Body Text, May 5 -- India's industrial and warehousing sector posted strong growth in Q1 2025, recording 9 million sq ft of leasing across the top eight cities, marking a 15% year-on-year rise, according to Colliers India. Delhi NCR led with over 3 million sq ft (35% share), followed by Chennai (22%). Notably, the engineering and e-commerce sectors together accounted for nearly half of the demand this quarter, surpassing the traditionally dominant 3PL sector.
New supply matched the momentum, with 9.4 million sq ft added-up 16% YoY-mainly concentrated in Delhi NCR and Chennai. Large deals (over 200,000 sq ft) made up 48% of leasing activity, reflecting robust demand, particularly from e-commerce, engineering, and automobile players. Micro-markets like Bhiwandi (Mumbai), Luhari (Delhi NCR), and NH-16 (Chennai) emerged as key leasing hubs.
Despite rising vacancy levels (up to 13% due to churns and exits), average rentals increased across major cities, supported by strong demand in prime industrial clusters. Industry leaders express optimism, projecting sustained momentum through 2025.
Published by HT Digital Content Services with permission from Construction World.