The consultancy reported that Q4 2025 was the busiest quarter ever with 23.4 million sq ft transactions, reflecting the continued momentum across the sector. Grade A facilities continued to be the most preferred choice among occupiers, accounting for 63% of the leased space, up slightly from 62% in 2024.
Excluding FMCG and FMCD, manufacturing occupiers remained the largest contributors to growth, accounting for 47% of the total leased space with 34 million sq ft transactions, a growth of 55% YoY. Good demand was also seen from third-party logistics (3PL) providers and e-commerce firms, with e-commerce space take-up growing 56% YoY to 7.8 million sq ft, the highest YoY volume since 2021.
Regional Highlights
Pune led the growth chart with 16 million sq ft transactions, an increase of 86 per cent YoY, and accounted for 22 per cent of the total national volume. Manufacturing leasing was concentrated in Pune and Chennai, which together accounted for 51% of manufacturing transactions in 2025.
Mumbai had the largest share of the total warehousing stock at 31 per cent, followed by the National Capital Region (NCR) at 21 per cent. Barring Kolkata and Hyderabad, other markets also witnessed growth in transaction volumes, reflecting India’s maturing markets along with its major manufacturing hubs.
outlook
“As global trade realigns and infrastructure investment accelerates, India is set to cement its place as a preferred manufacturing and distribution hub, driving sustained demand for high-quality, institutional-grade warehousing,” said Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India.
The report highlighted that India’s industrial and warehousing sector is becoming a strong, scalable and strategically positioned hub within global and regional supply chain networks, with vacancy levels remaining stable at 11.6 per cent during the year.
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