Mumbai: Manufacturing space leasing in India hit an all-time high during January–June 2025, with transactions totalling 9 million sq ft, a report said in August. The figure marks a 38 per cent year-on-year rise over H1 2024 (6.5 million sq ft) and is nearly six times higher than pre-pandemic H1 2019 (1.6 million sq ft), according to JLL.

Grade A warehousing facilities now account for 55 per cent of the total 463 million sq ft stock across India’s eight major cities. Net absorption reached 25 million sq ft in H1 2025, with full-year projections of 55–57 million sq ft — up 12–15 per cent from 50 million sq ft in 2024.

“India’s industrial real estate market is undergoing a structural shift, with manufacturing leases making up 24 per cent of all deals in H1 2025,” said Yogesh Shevade, Head (Industrial and Logistics), India, JLL.

Bengaluru led net demand, followed by Pune, NCR Delhi, Chennai, and Mumbai, which together contributed 90 per cent of India’s net absorption.

Third-party logistics dominated demand at 28 per cent, with manufacturing close behind at 24 per cent, driven by automotive, engineering, electronics, and white goods.

Manufacturers are increasingly adopting asset-light models, leveraging turnkey facilities with pre-secured approvals. Built-to-Suit (BTS) transactions are also on the rise, attracting rents 20–25 per cent above standard warehousing due to customised process requirements.