India’s industrial and logistics real estate sector is experiencing unprecedented growth in 2025, with major leasing deals signaling a robust market. According to Savills India, leasing activity surged by 18.5% in Q1 2025, reaching 160 lakh square feet across 24 cities, driven by strong demand in Tier-I cities like Delhi-NCR, Mumbai, and Pune.
1. IndoSpace’s Landmark Lease with RenewSys India
IndoSpace has leased over 700,000 sq ft to solar module manufacturer RenewSys India in Khalapur near Mumbai. The 10-year lease, valued at ₹1.43 crore per month, is among the largest logistics deals in recent times. The space comprises three units: 1.32 lakh sq ft at ₹27.14 lakh/month, 2.23 lakh sq ft at ₹45.90 lakh/month, and 3.45 lakh sq ft at ₹70.73 lakh/month.
2. Mahindra Logistics Secures 4.75 Lakh Sq Ft in Pune
In January 2025, Mahindra Logistics Limited leased 4.75 lakh sq ft of warehousing space in Khed near Pune. The five-year lease is valued at approximately ₹73 crore, highlighting Pune’s prominence in the logistics sector.
3. Tata Autocomp Katcon’s Strategic Move in Chakan
Tata Autocomp Katcon Exhaust Systems Pvt Ltd signed a 10-year lease for 77,800 sq ft with Malpani Group in Chakan near Pune. The deal, worth around ₹40 crore, marks Tata’s continued investment in the region.
4. HUL’s Major Lease in Bhiwandi
Hindustan Unilever Limited (HUL) leased 5.93 lakh sq ft of warehousing space in Bhiwandi near Mumbai at an initial monthly rent of ₹1.54 crore. The seven-year lease includes a 5% annual rental escalation, reflecting Bhiwandi’s strategic importance.
5. IndoSpace’s Asset Sale to Alta Capital
In December 2024, IndoSpace sold 2.5 million sq ft of fully built and leased warehousing space to Alta Capital for over ₹800 crore. The assets, located in Pune and Sri City, Andhra Pradesh, underscore the growing investor interest in India’s logistics infrastructure.
Market Trends and Outlook
The surge in leasing activities is driven by the manufacturing and third-party logistics (3PL) sectors, which accounted for a significant portion of the absorption in Q1 2025 citeturn0search0. Tier-I cities dominated the market, contributing 79% to the total leasing volume, while Tier-II and Tier-III cities accounted for the remaining 21%.
With continued investments and policy support, India’s industrial and logistics real estate sector is poised for sustained growth, offering lucrative opportunities for investors and stakeholders alike.
Stay informed on the latest developments in India’s industrial and logistics real estate sector to capitalize on emerging opportunities.
