Market Report
India Warehousing and Logistics Sector Review 2025
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Key Insights
1
7 Mn sq ft of absorption, declined by 14% annually
2
Mumbai dominated pan-India absorption with 39% share
3
3PL companies led with 36% share of pan-India absorption
Key Takeaways
- Warehousing and logistics sector witnessed an absorption of 38.7 Mn sq ft in 2025, a significant surge of 84% compared to 2020; however, it was 14% below compared to the peak of 2024. The moderation largely reflects a high base effect following the strong growth witnessed during 2022–2024, alongside a more cautious expansion strategy adopted by occupiers amid ongoing global macroeconomic uncertainty.
- Mumbai and Pune continued to lead the pan-India absorption with 56% share in 2025. However, the share reduced from 70% a year ago. Mumbai continued to dominate with 39% share, slightly lower than 41% a year ago, with Bhiwandi alone contributing nearly two-thirds of Mumbai’s absorption and 24% of India’s total, surpassing all other cities individually.
- Weighted average rentals across the top seven cities ranged between INR 19–28/sq ft/month in 2025. Pune emerged as the most expensive warehousing market, with average rentals rising sharply by 22% to INR 28.0/sq ft/month, driven by strong demand for Grade A assets and limited availability in preferred micro-markets.
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