The Indian real estate market experienced a significant 29% year-on-year surge in warehousing demand, reaching 72.5 million sq ft, the highest growth post-pandemic, as per a report by Knight Frank India. The final quarter of 2025 stood out as the strongest period, with 23.4 million sq ft of transactions recorded. Grade A facilities were the top choice for occupiers, constituting 63% of leased space in 2025.
Manufacturing occupiers, excluding FMCG and FMCD, continued to lead as the primary demand driver, representing 47% of the total volume, with 34 million sq ft transacted in 2025, marking a 55% YoY increase. The industrial and warehousing sectors in India showcased robust performance in 2025, fueled by sustained demand from manufacturing, third-party logistics (3PL), e-commerce, and related industries.
Pune emerged as a key market, witnessing 16 million sq ft in transactions, an 86% YoY growth, and capturing a 22% share of total volumes. Notably, manufacturing transactions were concentrated in Pune and Chennai, accounting for 51% of manufacturing leasing activity during the year. Mumbai led the market with a 31% share of total stock, followed by NCR at 21%.
Shishir Baijal, International Partner, Chairman, and Managing Director of Knight Frank India, expressed confidence in India’s position as a preferred manufacturing and distribution hub, driven by global trade realignment and accelerated infrastructure investments. The market’s performance highlighted India’s growing role as a resilient, scalable, and strategically positioned hub within global and regional supply chain networks.
