The warehousing stock in India hit 610 million square feet by 2025, with over half being premium Grade A space, according to a JLL report. Institutional-backed Grade A assets now make up 38% of the quality stock, offering standardized development and attracting global occupiers. Logistics (3PL) and e-commerce are driving storage demand, while light manufacturing, particularly in auto, engineering, and electronics, is on the rise, signaling a shift in occupier profiles.
The top eight tier 1 cities continue to dominate, controlling 82% of the total stock at 498 million sq. ft., while 14 emerging tier 2 cities collectively host 112 million sq. ft. of stock. As India moves towards 850 million sq ft of warehousing stock by 2030, the sector is expected to see a convergence of geographic diversification, institutional investment, and automation integration. This transformation will turn basic storage facilities into technology-driven fulfillment ecosystems, as per the report.
Yogesh Shevade, Head of Logistics and Industrial at JLL India, noted the growth of warehousing in tier 2 cities alongside tier 1 cities. While metro cities still dominate with 82% market share, cities like Lucknow and Kochi are each absorbing over a million sq. ft, reflecting rapid consumption demand growth. Warehouses are increasingly adopting automation, projected to grow from 10% to three-quarters by 2030.
In 2025, tier 1 cities saw a net absorption of 55 million sq. ft., while tier 2 cities recorded a net absorption of 12 million sq. ft., showcasing occupiers’ interest in expanding into India’s urban demand to enhance operational capabilities. The report emphasized that operational efficiency, sustainability, and advanced automation will not only be competitive advantages but also the key pillars supporting India’s rise as a global logistics hub.
