Industrial, warehousing space leasing hits record 59.1 mn sq ft in top 24 cities in Jan-Sep: Savills

Leasing of industrial and warehousing spaces rose 7 per cent in January-September across top 24 cities of the country on better demand from light manufacturing, third party logistics and e-commerce companies, according to Savills.

According to real estate consultant Savills India's data, the leasing of industrial and warehousing spaces rose to a record 59.1 million sq ft during January-September from 55.3 million sq ft in the year-ago period.

Of the total number, Savills said the leasing in top eight major cities rose to 47.2 million sq ft from 44 million sq ft.

In tier-II and III cities, the leasing grew to 11.9 million sq ft from 11.3 million sq ft.

Tier- I cities include Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Delhi-NCR, and Pune.

Tier-II and Tier-III cities include Guwahati, Bhubaneswar, Patna, Hosur, Coimbatore, Rajpura, Lucknow, Jaipur, Nagpur, Surat, Indore, Kochi, Hubli, Vizag, Belgaum and Anantapur.

Savills data showed that fresh supply also increased 25 per cent annually to 68.9 million sq ft during the January-September period of this year.

"India's industrial and logistics sector is expected to witness steady growth in 2026, supported by manufacturing expansion and sustained demand from 3PL, FMCG/FMCD, retail, and e-commerce occupiers," the consultant said.

Rising consumption, supply chain realignment, and growing activity in Tier-II and III cities would continue to drive demand, it predicted.

Commenting on the report, Mukesh Choudhary, Managing Director of realty firm Accuspace, noted that the demand for quality industrial and logistics spaces is growing.

"While Tier-I hubs continue to lead, Tier-II and III markets like Jaipur are carving out a distinct and critical position, driving nearly one fifth of the country's total absorption," he added.

Choudhary said the company is witnessing a structural shift as e-commerce, 3PL (third party logistics) providers, and manufacturing units look for high-grade regional hubs to optimize, de-risk and decentralise their supply chain.

To meet this demand, he said the new parks are being developed across the country.

Lalit Parihar, MD of realty firm Aaiji Group, said the demand for industrial and logistics space is robust across major cities of Gujarat, including Ahmedabad, Surat and Dholera.
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