• H1 2025 Grade A industrial & warehousing demand around 20 mn sq ft, rises YoY by 33% • Delhi NCR and Chennai dominate leasing, collectively driving around half of the demand in H1 2025 • 3PL firms drive almost one-third of the demand in H1 2025, followed by engineering and e-commerce segments • New supply closely follows demand with about 19 mn sq ft of completions during H1 2025 BENGALURU, India, July 21, 2025 /PRNewswire/ -- With about 20 mn sq ft of leasing activity in H1 2025 at 33% YoY growth, industrial & warehousing demand across the top eight cities remained robust. Delhi NCR and Chennai led the demand, cumulatively accounting for about half of the overall leasing in H1 2025. Interestingly among the top eight cities, Delhi NCR, Chennai, Mumbai and Bengaluru saw impressive demand of at least 2 mn sq ft during the first half of the year.

Third Party Logistics (3PL) players continued to be the primary drivers of space uptake in Grade A warehouses & industrial sheds, contributing to about 32% share in overall demand during the first half of the year. In fact, demand from most occupier segments including 3PL, engineering, e-commerce, automobile, and retail firms rose significantly during H1 2025. Meanwhile, at the micro market level, warehousing space uptake was the highest in Bhiwandi (Mumbai) at 3.1 mn sq ft followed by Oragadam (Chennai) at 1.5 mn sq ft.

Trends in Grade A Gross absorption (mn sq ft) City Q2 2025 Q2 2024 YoY change H1 2025 H1 2024 YoY change Ahmedabad 0.6 0.3 100 % 1.2 0.6 100 % Bengaluru 1.2 1.2 0 % 2.0 1.7 18 % Chennai 1.7 1.3 31 % 3.7 3.2 16 % Delhi NCR 2.5 1.8 39 % 5.6 3.2 75 % Hyderabad 0.8 0.3 167 % 1.1 0.5 120 % Kolkata 0.5 0.4 25 % 1.0 0.7 43 % Mumbai 2.1 0.6 250 % 3.1 2.5 24 % Pune 1.1 1.0 10 % 1.8 2.3 -22 % TOTAL 10.5 6.9 52 % 19.5 14.7 33 % Source: Colliers Note: Data pertains to Grade A buildings. Absorption does not include lease renewals, pre-commitments and deals where only a Letter of Intent has been signed.

"During the second quarter of 2025, industrial & warehousing sector saw about 11 mn sq ft of demand across the top eight cities, a 52% rise YoY. Notably, Q2 recorded the highest quarterly gross absorption in the last few years. Delhi NCR drove around one-fourth of the quarterly demand at 2.5 mn sq ft of Grade A space uptake. The demand in the region was led by large space uptake in Farukhnagar and Kulana micro markets. In fact, cities like Delhi NCR, Mumbai and Chennai, with 60% demand share in Q2 2025, continued to drive industrial & warehousing sector in India. The growth momentum is likely to remain unabated in the forthcoming quarters, setting the stage for a strong performance in 2025," says Vijay Ganesh,Managing Director, Industrial & Logistics Services, Colliers India.

3PL continues to dominate demand in H1 2025; leasing by other segments on the rise During the first half of 2025, 3PL players continued to dominate demand, accounting for around one-third of the leasing activity. Concurrently, space uptake by other occupier segments such as engineering, e-commerce and automobile were also notable, with each segment accounting for 2-4 mn sq ft of space take up, during H1 2025.

"The industrial & warehousing sector witnessed strong space uptake in the first half of 2025 with around 20 mn sq ft of leasing, driven by robust demand across a diverse range of occupier segments. While 3PL players continue to lead overall demand, engineering, e-commerce and automobiles, segments have been steadily gaining traction over the last few quarters. Each of these three segments accounted for around 10-20% of the Grade A space uptake in H1 2025. This heterogeneity of demand reflects the sector's resilience and aligns with the broad-based growth prospects in the domestic economy. It also sets a strong foundation for continued growth in industrial & warehousing sector through the rest of 2025, " says Vimal Nadar, National Director & Head of Research, Colliers India.

Large sized deals account for 51% of gross leasing across the top 8 cities During H1 2025, large deals (>200,000 sq ft) accounted for about half of the demand. Although a vast majority of these larger deals came from 3PL players, e-commerce and engineering segments too continued to witness large warehousing space requirements. At the city level, Delhi NCR followed by Mumbai dominated large-sized deals during H1 2025.

New supply also remains strong in H1 2025, rises by 11% on an annual basis The first six months of 2025 saw a new supply to the tune of 19 mn sq ft, an 11% YoY rise. The new supply was almost in line with the strong leasing activity during H1 2025, indicating improved developer confidence in the industrial & warehousing market. Taking cognizance of healthy demand across major cities and business environment, developers have been infusing high quality warehousing facilities replete with technologically advanced features.

Moreover, in line with demand trends, Delhi NCR and Chennai accounted for the bulk of new supply during H1 2025. These two cities cumulatively contributed close to half of the new supply across the top eight cities of the country. Notably, Q2 2025 witnessed 10 mn sq ft of completions in top eight cities of the country, an 8% YoY rise. Q2 2025 also marked the highest quarterly supply infusion over the last few quarters. Upcoming quarters are also likely to witness significant influx of Grade A supply, with new supply expected to reach about 35-40 mn sq ft by the end of the year.

Trends in Grade A Supply (mn sq ft) City Q2 2025 Q2 2024 YoY change H1 2025 H1 2024 YoY Change Ahmedabad 0.6 0.7 -14 % 1.1 1.0 10 % Bengaluru 0.6 0.6 0 % 1.5 2.0 -25 % Chennai 1.5 1.4 7 % 3.5 2.7 30 % Delhi NCR 3.7 3.4 9 % 6.2 5.7 9 % Hyderabad 0.7 0.1 600 % 0.9 0.7 29 % Kolkata 0.8 1.0 -20 % 1.3 1.3 0 % Mumbai 1.5 0.5 200 % 3.4 1.5 127 % Pune 0.6 1.6 -63 % 1.5 2.5 -40 % TOTAL 10.0 9.3 8 % 19.4 17.4 11 % Source: Colliers Note: Data pertains to Grade A buildings Overall vacancy levels remained stable on a sequential basis and stood at 13.5% at the end of H1 2025. Meanwhile, amidst healthy demand and high-quality supply infusion, rentals in key micro markets saw a notable uptick.

Media Contact: Sukanya Dasgupta National Director, Marketing & Communications| India [email protected] +91 9811867682 About Colliers Colliers (NASDAQ: CIGI) (TSX: CIGI) is a leading global diversified professional services company, specializing in commercial real estate services, engineering consultancy and investment management. With operations in 70 countries, our 22,000 enterprising professionals provide exceptional service and expert advice to clients. For nearly 30 years, our experienced leadership – with substantial inside ownership – has consistently delivered approximately 20% compound annual investment returns for shareholders. With annual revenues exceeding $4.5 billion and $99 billion of assets under management, Colliers maximizes the potential of property, infrastructure and real assets to accelerate the success of our clients, investors and people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn or YouTube.

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