India’s Warehousing Sector Rebounds 64% in Q3 2025 as Occupier Demand Revives: Vestian

After a muted performance in the previous quarter, India’s warehousing and logistics sector recorded a strong rebound in Q3 2025, with total absorption reaching 9.2 million sq ft, a 64% increase quarter-on-quarter (QoQ), according to a report by Vestian Research. However, the absorption was still 36% lower year-on-year (YoY) compared to the record levels seen in Q3 2024.

Mumbai led the recovery, contributing 47% of the pan-India absorption at 4.29 million sq ft. The city registered an impressive 377% QoQ rise and a 10% YoY increase, signalling renewed demand in key warehousing hubs such as Bhiwandi and Panvel, which together accounted for nearly 96% of the total city absorption.

NCR emerged as the second-largest market with 1.28 million sq ft absorbed, marking an 83% QoQ jump, though 40% below the same period last year. Chennai also stood out with 1.13 million sq ft of absorption — its highest in seven quarters — up 151% QoQ and 38% YoY, driven by steady leasing activity and robust industrial demand.

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Kolkata posted its highest-ever absorption at 1.26 million sq ft, surging 950% QoQ and 186% YoY, reflecting growing traction among occupiers in the eastern region.

In contrast, Pune and Bengaluru saw sharp declines, with absorption dropping 31% and 94% QoQ, respectively. Hyderabad remained relatively stable with 0.47 million sq ft, up 7% QoQ but down 14% YoY.

Commenting on the findings, Shrinivas Rao, FRICS, CEO, Vestian, said, “After a subdued quarter, the warehousing and logistics sector has shown clear signs of revival in Q3 2025, led by Mumbai, Kolkata, and NCR. The resurgence in occupier demand and the growing focus on Grade-A assets reflect the sector’s evolving depth and diversification.”