Nearly 70% of APAC occupiers intend to increase their logistics presence in India over the next two years, making it the most popular warehouse location in the Asia-Pacific area. Strong occupier confidence in India’s industrial and logistics (I&L) sector is shown by CBRE’s newly published 2025 India Logistics Occupier Survey. A rise in local consumption, changing global supply chain strategies, and the availability of contemporary logistics infrastructure are all factors contributing to the expanding intent.
Over 380 logistics occupiers from the Asia-Pacific area participated in the survey, which was conducted between March and April 2025. Of them, over 100 were from companies situated in India. Long-term optimism and ongoing investment momentum are shown by the fact that over 80% of occupiers with offices in India, including both domestic and foreign firms, stated plans to grow their warehouse operations in the nation over the next two years. This demonstrates India’s great resilience and growing strategic significance in the global supply chain ecosystem, even in the face of current macroeconomic uncertainty.
India’s growing third-party logistics (3PL) networks, advancing infrastructure, and continuous government efforts to increase logistics efficiency are the main drivers of this need, according to CBRE. “India’s logistics sector is going through a transformational phase, underpinned by strong macroeconomic fundamentals, fast-tracked infrastructure development, and an evolving occupier ecosystem that is focused on scalability, efficiency, and sustainability,” stated Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE. He went on to say that the survey’s findings confirm India’s standing as the APAC region’s top logistics destination.
Although opinions are generally favorable, the survey also identifies a number of significant obstacles that occupiers must overcome in order to expand. With 55% of respondents identifying rising land prices and construction costs as significant obstacles, cost escalation appeared as the most urgent worry. Economic uncertainty comes next, as 49% of respondents are worried about the unpredictability of international commerce and how it can affect corporate planning. A developing challenge, according to 46% of respondents, is the rivalry for high-quality logistics assets, particularly in major metropolitan clusters where there is a considerable demand for contemporary Grade A warehouses.
Despite these challenges, occupiers are showing a clear shift in preference towards high-quality, future-ready infrastructure. The survey found that 84% of respondents are actively moving from older, non-compliant facilities to newer, investment-grade warehouses. These modern assets are not only better equipped with automation capabilities and improved transportation access but also meet evolving regulatory and ESG (environmental, social, and governance) compliance standards. Occupiers are increasingly prioritizing features such as proximity to highways and urban markets, scalability, and sustainability when selecting new sites for expansion.
Technology and ESG have now moved to the center of strategic decision-making for logistics occupiers. According to the survey, 57% of occupiers are investing in automation technologies such as automated storage and retrieval systems (AS/RS) to improve operational efficiency. Furthermore, ESG-related factors like renewable energy integration, green building certifications, and smart energy systems are playing a pivotal role in site selection and investment decisions. Occupiers recognize that future-ready infrastructure is essential not just for cost efficiency but also for attracting institutional capital and fulfilling global sustainability commitments.
The report underlines that India’s warehousing stock, currently estimated at over 400 million square feet, is likely to double by the end of the decade. This growth is being driven by strong demand from sectors such as e-commerce, FMCG, engineering, auto & ancillary, and manufacturing. Government initiatives like the Gati Shakti master plan and the National Logistics Policy are expected to further streamline logistics operations and reduce turnaround times, making India an even more attractive proposition for global and domestic occupiers.
