New Delhi, 13th November 2025: Warehousing and logistics sector witnessed an absorption of 9.2 Mn sq ft in Q3 2025, rebounding by 64% compared to the subdued previous quarter. Despite this robust growth, the absorption was 36% less when compared to the record level of absorption reported in the same quarter a year earlier.
Mumbai contributed the highest to pan-India absorption in Q3 2025, around 47%. In value terms, the city led pan-India absorption with 4.29 Mn sq ft, registering a sharp quarter-on-quarter rise of 377% and 10% increase compared to Q3 2024, indicating a revival after a muted previous quarter. The increase in absorption can be attributed to renewed occupier demand in key micro-markets such as Bhiwandi and Panvel, which accounted for nearly 96% of the total absorption in the city.
NCR followed as the second-largest contributor with 1.28 Mn sq ft of absorption, registering an 83% increase over the previous quarter, though it decreased by 40% compared to the same quarter a year earlier.
Chennai also witnessed sustained leasing activity with 1.13 Mn sq ft of absorption in Q3 2025, the highest in the past seven quarters. Absorption increased by 151% over the previous quarter and 38% compared to the same period a year earlier. The city emerged as one of the best-performing markets among the southern cities.
Leasing activity in Kolkata swelled by 950% over the previous quarter and by 186% compared to Q3 2024, resulting in 1.26 Mn sq ft of absorption in Q3 2025. This is the highest ever absorption recorded in the city.
In contrast to its peer cities, absorption in Pune gradually declined over the consecutive four quarters, reaching 0.64 Mn sq ft in Q3 2025. In addition, the city’s absorption declined by 31% over the previous quarter and 87% compared to the same quarter a year earlier. The city, which had previously maintained strong leasing momentum, saw a sharp correction this quarter. Similarly, Bengaluru’s absorption also dropped significantly to 0.13 Mn sq ft, recording a steep 94% (quarterly) and 90% (yearly) decline. This was the lowest absorption among the top seven cities.Hyderabad recorded 0.47 Mn sq ft of absorption in Q3 2025, reflecting a 7% increase over the previous quarter but a 14% decline compared to the same quarter of the previous year. Overall, the city’s absorption remained largely stable during the year.
City-wise Absorption
| City | Q3 2025 | Q2 2025 | Q3 2024 | Q3 2025 vs Q2 2025 | Q3 2025 vs Q3 2024 |
| Bengaluru | 0.13 | 2.03 | 1.35 | -94% | -90% |
| Chennai | 1.13 | 0.45 | 0.82 | 151% | 38% |
| Hyderabad | 0.47 | 0.44 | 0.55 | 7% | -14% |
| Pune | 0.64 | 0.93 | 5.08 | -31% | -87% |
| Mumbai | 4.29 | 0.90 | 3.89 | 377% | 10% |
| Kolkata | 1.26 | 0.12 | 0.44 | 950% | 186% |
| NCR | 1.28 | 0.70 | 2.15 | 83% | -40% |
| Pan-India | 9.20 | 5.57 | 14.28 | 64% | -36% |
Source: Vestian Research
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 segments, underscores the sector’s growing depth and diversification. As occupiers focus on network optimization and grade-A assets, India’s warehousing and logistics landscape is reshaping for a stronger performance in the upcoming quarters.”
