New Delhi, March 5 (IANS) Indian real estate market posted 29 per cent year-on-year (YoY) increase in warehousing demand to 72.5 million sq ft, marking the highest growth in the post-pandemic period, a report said on Thursday.
Property consultancy Knight Frank India said that Q4 2025 emerged as the strongest quarter of the year, posting 23.4 million sq ft worth of transactions.
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, the report said.
Manufacturing occupiers (excluding FMCG and FMCD) maintained their lead as the largest demand driver, commanding 47 per cent of total volume with 34 million sq ft transacted in 2025 up 55 per cent YoY.
India’s industrial and warehousing markets delivered a strong performance in 2025, driven by sustained demand from manufacturing, third party logistics (3PL), e-commerce and allied sectors, it added.
Pune emerged as the most prolific market, recording (16 million 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.
“As global trade realigns and infrastructure investments accelerate, we remain confident that India will further strengthen its position as a preferred manufacturing and distribution hub, driving sustained demand for high-quality, institutional-grade warehousing in the years ahead,” said Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India.
Mumbai led the market with a 31 per cent share of total stock, followed by NCR at 21 per cent. All markets except Kolkata and Hyderabad grew in terms of transaction volumes. The distribution of activity signals a maturing market where capital and occupiers increasingly align with established manufacturing ecosystems like in Pune, the report said.
The market’s performance reinforced India’s growing role as a resilient, scalable and strategically positioned hub within global and regional supply chain networks, the firm said. Vacancy levels were stable at 11.6 per cent during the year.
Space take-up by e-commerce players increased 56 per cent YoY in 2025, absorbing 7.8 million sq ft, the highest annual volume recorded since 2021.
—IANS
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