Summary:

India’s industrial and warehouse sectors grew well in H1 2025, with Delhi NCR and Chennai leading the way, accounting for over half of the 20 million square feet leased. The industry climbed 33% year on year, with 11 million square feet leased in Q2 alone—the largest in recent years. 3PL enterprises accounted for 32% of demand, with Grade A spaces dominating deals, indicating a strong preference for superior infrastructure.

In H1 2025, supply remained healthy, with developers adding 19 million square feet of new space, an 11% rise year on year. April-June alone saw 10 million square feet constructed, the most in previous quarters. Delhi NCR and Chennai dominated new development, accounting for half of the supply. Large-scale deals (200,000+ square feet) prevailed, particularly in Delhi NCR and Mumbai. Rents rose due to strong demand and high-quality spaces, with total supply expected to reach 35-40 million square feet by the end of the year.

Source: IBEF

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