According to a December 24 analysis by Cushman & Wakefield, leasing of logistics and industrial (L&I) spaces is expected to exceed 50–53 million sq. feet in 2024 across eight major cities due to continuous demand. In the Delhi-NCR, Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Hyderabad, Pune, and Ahmedabad, 53.57 million square feet of L&I space were leased. According to the estimate, the leasing volume in the leading real estate markets has already topped 41 million square feet as of October 2024.
“The amount of industrial leasing has grown steadily since the government’s introduction of the Production-Linked Incentive (PLI) program in 2020. Furthermore, there is a lot of activity in the warehouse sector as a result of the robust growth of retail and e-commerce,” the report continued. The main causes driving the demand for L&I space in recent years have been the expansion of the engineering and manufacturing (E&M) sector, the strengthening of 3PL operators, and the retail business. These factors will continue to be important drivers in 2025. In recent years, leasing volumes have been robust in cities like Bengaluru, Chennai, and Pune, while other cities show promise. The consultant pointed out that international manufacturing companies’ China 1 diversification strategy benefits India as well.
“Leasing volumes are expected to surpass 50 million square feet for the third consecutive year, demonstrating the logistics and industrial sector’s exceptional development potential in India. According to Logistics & Industrial, Cushman & Wakefield, “This is driven by strong demand across quick-commerce, retail, engineering, and manufacturing sectors.” Given India’s expanding consumer base and the strong industrial activity seen in recent years, Cushman & Wakefield predict that demand will continue at the new-normal level in 2025.
