Despite the quarterly gain, overall absorption was 36 per cent lower than the record levels of Q3 CY2024, the global real estate advisory noted in its report on India’s warehousing and logistics sector.
Global real estate advisory Vestian has reported that India’s warehousing and logistics sector witnessed an absorption of 9.2 million sq ft in Q3 CY2025, marking a 64 per cent rebound over the subdued previous quarter. The recovery was led by strong activity in Kolkata, Mumbai, and NCR, while Pune and Bengaluru saw sharp declines, according to Vestian’s India report, Warehousing & Logistics Sector Review.
Mumbai contributed the highest to pan-India absorption, accounting for 47 per cent of the total. The city recorded 4.29 million sq ft of absorption—a 377 per cent QoQ increase and a 10 per cent rise YoY—driven by renewed occupier demand in micro-markets such as Bhiwandi and Panvel, which together made up 96 per cent of the city’s total.
Delhi NCR followed with 1.28 million sq ft, an 83 per cent increase over the previous quarter, though down 40 per cent YoY.
Chennai posted 1.13 million sq ft, the highest in seven quarters, with absorption rising 151 per cent QoQ and 38 per cent YoY, making it the best-performing southern city.
It was, however, Kolkata that threw up a surprise. The city saw a dramatic surge, with leasing activity rising 950 per cent QoQ and 186 per cent YoY, totalling 1.26 million sq ft, its best performance by far.
Commenting on the trend, Shrinivas Rao, FRICS, CEO, Vestian, said, “After a subdued previous quarter, the warehousing and logistics sector has shown clear signs of revival in Q3 2025, with Mumbai, Kolkata, and NCR leading absorption. The resurgence in occupier demand across key micro-markets, coupled with renewed momentum in the E-commerce and 3PL (third-party logistics) segments, underscores the sector’s growing depth and diversification.”
Pune, Bengaluru Sputter
Despite the quarterly gain, overall absorption was 36 per cent lower compared to the record levels seen in Q3 CY2024.
However, Pune and Bengaluru reported significant declines. Pune’s absorption fell to 0.64 million sq ft, down 31 per cent QoQ and 87 per cent YoY, marking a four-quarter slide. Bengaluru recorded just 0.13 million sq ft, a steep 94 per cent QoQ and 90 per cent YoY drop, the lowest among the top seven cities.
Hyderabad saw 0.47 million sq ft of absorption, up 7 per cent QoQ but down 14 per cent YoY, indicating relative stability.
However, Rao was quick to point out, “As occupiers focus on network optimisation and grade-A assets, India’s warehousing and logistics landscape is reshaping for a stronger performance in the upcoming quarters.”