India’s industrial and logistics real estate sector hit a historic high in 2025, driven by strong leasing from manufacturing, logistics, and e-commerce players.

According to Savills India, leasing across 24 cities reached 76.5 million sq ft, up nearly 19% from 2024, marking the highest annual absorption on record.

Manufacturing led demand with 29% share, followed by 3PL operators (28%) and e-commerce (12%), highlighting a diversified occupier base. Tier-I cities dominated, absorbing 59.5 million sq ft, with Delhi-NCR emerging as the top market at 13 million sq ft.

Tier-II and III cities also grew 14.5%, reflecting wider geographic expansion. Analysts expect absorption to cross 80 million sq ft in 2026, supported by infrastructure growth and resilient supply chains.