India’s industrial and warehousing sector recorded 9 million sq ft of leasing in Q1 2025, up 15% YoY, driven largely by Delhi NCR and Chennai, which together contributed 57% of the demand.

Engineering emerged as the top sector, surpassing 3PLs, and accounting for 25% of leasing, followed by e-commerce at 21%. Key micro-markets included Bhiwandi (Mumbai), Luhari (Delhi NCR), and NH-16 (Chennai).

Large deals over 200,000 sq ft made up 48% of leasing, with Delhi NCR leading. New supply rose 16% YoY to 9.4 million sq ft.

The sector is set for continued growth in 2025, supported by rising demand in engineering, e-commerce, and automotive segments, and increasing activity in Tier I and II cities.