Leasing activity for logistics and industrial (L&I) spaces across eight major cities in India is expected to reach between 50 and 53 million square feet this year, as demand remains strong, according to Cushman & Wakefield. As of October 2024, leasing volumes have already surpassed 41 million square feet in key markets including Delhi-NCR, Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Hyderabad, Pune, and Ahmedabad. Cushman & Wakefield highlights that the leasing activity has been driven by sustained demand, particularly following the introduction of the government’s Production-Linked Incentive (PLI) scheme in 2020, which has fueled healthy growth in industrial leasing.
The rapid rise of e-commerce and retail sectors has also spurred significant activity in the warehousing space.
Looking ahead to 2025, Cushman & Wakefield anticipates that demand for L&I spaces will remain robust. This projection is based on India’s growing consumption base and continued industrial activity, both of which are expected to support the sustained demand for logistics and industrial real estate. India’s status as a beneficiary of the China+1 diversification strategy, where global manufacturing companies are diversifying their supply chains, further strengthens this outlook.
Abhishek Bhutani, Managing Director of Logistics & Industrial at Cushman & Wakefield, noted that the sector continues to show remarkable growth potential, with leasing volumes set to surpass 50 million square feet for the third consecutive year. The strong demand across industries such as quick-commerce, retail, engineering, and manufacturing is expected to keep the sector buoyant in 2025.
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