 "India’s Warehousing Demand Surges 42% in H1 2025, Driven by Manufacturing Boom: Knight Frank Report 1")
New Delhi, Aug 14 (IANS) — India’s warehousing sector recorded a remarkable 42% year-on-year (YoY) growth in leasing activity, hitting 32.1 million sq ft across the country’s top eight markets in the first half of 2025 (H1 2025), according to Knight Frank India.
Key Highlights from the Report
- Total leasing: 32.1 mn sq ft (+42% YoY)
- Manufacturing sector: +71% YoY, 14.6 mn sq ft leased (45% share of transactions)
- Grade A facilities: 63% share of leased space (up from 54% in 2024)
- Pan-India stock: Crossed 500 mn sq ft, with Grade A assets making up 75% of new supply
- Vacancy rate: Dropped to 12.1% (from 13.1% last year)
Sector-wise Leasing Performance
| Sector | Volume (mn sq ft) | YoY Growth | Share of Total | Top Markets |
|---|---|---|---|---|
| Manufacturing | 14.6 | +71% | 45% | Mumbai, Pune |
| 3PL (Third-Party Logistics) | 8.7 | +30% | 27% | Mumbai, NCR, Pune |
| E-commerce | 3.3 | +61% | 10% | NCR, Bengaluru |
City-wise Trends
- Mumbai: 7.5 mn sq ft (+63% YoY) — largest market share
- Pune: +76% YoY, strong manufacturing-led absorption
- Chennai: +135% YoY — fastest growth among all cities
- Ahmedabad: New half-yearly high at 3.6 mn sq ft
- Bengaluru: +72% YoY, with manufacturing making up 65% of leasing
- Kolkata: Only major market to record a decline
Why the Surge?
- Global supply chain realignment — India emerging as a preferred production hub
- Increased demand for Grade A warehousing
- Strong manufacturing & consumption growth in India
Quote:
“A 71% YoY rise in manufacturing-led activity highlights the shift towards India as a preferred production hub amid global realignments,” said Shishir Baijal, Chairman & MD, Knight Frank India.
