India’s logistics and industrial property market experienced its strongest first half on record, with leasing reaching 36.2 million sq ft , driven by a shift towards manufacturing demand, electric vehicle investment, and broader occupier interest, according to Cushman & Wakefield.
India’s logistics and industrial property market had its strongest first half on record, with leasing reaching 36.2 million square feet, according to Cushman & Wakefield’s latest market report. The figure marked an 18% year-on-year increase and underscored the sector’s resilience as demand from logistics operators, manufacturers and carmakers continued to broaden.
Warehousing remained the biggest part of the market, accounting for 24.3 million square feet, or 67% of all leasing. Even so, industrial space posted the sharper rise, climbing 36% from a year earlier to 12 million square feet. That shift points to a growing role for manufacturing-led demand alongside traditional storage requirements.
Third-party logistics providers and engineering and manufacturing occupiers together made up 60% of activity, while automotive demand almost doubled from the first half of 2025 to 4.8 million square feet. The report said investment linked to electric vehicles helped support that surge. Delhi NCR led all markets, followed by Chennai and Pune.
The latest half-year performance builds on a strong run for the sector. Cushman & Wakefield said leasing reached 30.7 million square feet in the first half of 2025, while CBRE reported that warehousing absorption stayed above 30 million square feet in the second half, driven by 3PL and engineering and manufacturing firms as well as e-commerce and quick-commerce expansion. Across both reports, the same pattern is clear: India’s logistics market is no longer being shaped by storage alone, but by a wider industrial push that is drawing in a more diverse occupier base.
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