India Warehousing and Logistics Sector Review H1 2025

· Mumbai recorded the highest absorption of 6.5 Mn sq ft among the top seven cities during H1 2025. However, there is a 5% decline compared to H1 2024 and a sharper 45% drop from H2 2024, primarily due to reduced leasing activities by 3PL companies in the city.

· 3PL (3^rdParty Logistics) companies dominated absorption with 37% share in H1 2025. The share has slightly decreased from 39% in H1 2024. However, the share of Engineering & Manufacturing and Consumer Goods & Services sectors increased from 22% and 10% in H1 2024 to 24% and 11% in H1 2025, respectively.

· Weighted average rental values across the top seven cities remained largely stable in H12025 amidst fluctuating market conditions, ranging between INR 18–31/sq ft/month. Pune holds the highest rental of INR 31/sq ft/month, driven by strong demand from 3PL, automotive, engineering, and manufacturing sectors.

· Investments dropped drastically to USD 32 Mn, marking a significant 92% decline compared toH2 2024 and a 98% fall annually. Consequently, the sector’s share in total investments also fell to a mere 1%, touching the lowest level in the post-COVID era.