India’s warehousing and logistics sector recorded a sharp recovery in the July–September quarter of 2025, with total absorption rising to 9.2 million sq ft—up 64% from the subdued levels of the previous quarter, according to Vestian. Despite the rebound, absorption remained 36% lower than the record-high levels seen in the same period last year.
Mumbai led the recovery, accounting for nearly half of India’s total absorption at 4.29 million sq ft. The city posted a striking 377% quarter-on-quarter jump and a 10% rise over Q3 2024, supported by renewed occupier activity in major hubs such as Bhiwandi and Panvel, which contributed 96% of the city’s demand.
The National Capital Region emerged as the second-largest market, absorbing 1.28 million sq ft—an 83% rise quarter-on-quarter, though still 40% below last year’s level. Chennai saw robust leasing momentum as well, with 1.13 million sq ft absorbed, marking its highest activity in seven quarters. Demand in the city increased 151% from the previous quarter and 38% year-on-year, positioning it as one of the best performers in southern India.
Kolkata reported its strongest-ever quarter, with absorption surging to 1.26 million sq ft—a 950% rise over the previous quarter and 186% higher year-on-year.
In contrast, Pune saw demand decline for the fourth straight quarter, recording 0.64 million sq ft—down 31% from the previous quarter and 87% from a year earlier. Bengaluru too faced a sharp downturn, with absorption falling 94% quarter-on-quarter to just 0.13 million sq ft, its lowest among the top seven cities. Hyderabad remained relatively stable at 0.47 million sq ft, up 7% sequentially but down 14% year-on-year.
Vestian CEO Shrinivas Rao said the revival signals renewed depth in the sector, driven by e-commerce and 3PL demand and a growing focus on network optimisation and Grade-A facilities.
