This marks the first year of growth at this scale in the post-pandemic period. Q4 2025 emerged as the strongest quarter of the year, with 23.4 mn sq ft transacted, the report said.
This marks the first year of growth at this scale in the post-pandemic period. Q4 2025 emerged as the strongest quarter of the year, with 23.4 mn sq ft transacted, the report said.
The growth was driven by sustained demand from manufacturing, third party logistics (3PL), e-commerce and allied sectors. The market’s performance reinforced India’s growing role as a resilient, scalable and strategically positioned hub within global and regional supply chain networks. Grade A facilities remained the preferred choice among occupiers, accounting for 63 per cent of leased space in 2025, compared to 62 per cent in the same period last year.
Manufacturing occupiers (excluding FMCG and FMCD) maintained their lead as the largest demand driver, commanding 47 per cent of total volume with 34 mn sq ft transacted in 2025 translating to a 55 per cent YoY growth in the area leased by it during the period.
Space take-up by e-commerce players increased 56 per cent YoY in 2025, absorbing 7.8 mn sq ft, the highest annual volume recorded since 2021. The sector accounted for 11 per cent to total market activity in 2025, indicating a steady recovery in demand and a stronger role in overall absorption, the report said.
While total transaction volumes across the eight primary markets reached 72.5 mn sq ft, 2025 reflected a clear shift in regional leadership. Pune emerged as the most prolific market, recording (16 mn sq ft) in transactions, marking an 86 per cent YoY growth and capturing a 22 per cent share of total volumes. Manufacturing transactions were notably concentrated in Pune and Chennai, which together accounted for 51 per cent of manufacturing leasing activity during the year, according to the report.
Critical heavyweights
Mumbai and NCR remained critical heavyweights, sustaining the sector’s momentum throughout the year. All markets except Kolkata and Hyderabad witnessed a growth in overall transaction volumes in 2025. The distribution of activity signals a maturing market where capital and occupiers increasingly align with established manufacturing ecosystems like in Pune.
Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, said, the Indian warehousing sector’s record performance in 2025 underscores the structural transformation underway in our supply chains. With demand scaling a new peak of 72.5 mn sq ft in 2025, driven by manufacturing, 3PL players and a steadily recovering e-commerce segment, the market is witnessing the rise of a broader and increasingly diversified occupier base.
Published on March 5, 2026