Business EconomyPosted at: Nov 6 2025 7:55PM


Demand for manufacturing warehouses spike by 16pc to 17.1 mn sq ft: Knight Frank

New Delhi, Nov 6 (UNI) Q3 of 2025 saw the industrial and warehousing market recording a 16 per cent year-on-year (YoY) increase in warehousing demand to 17.1 mn sq ft.
Knight Frank India, a leading international property consultancy, in its latest edition of India Industrial and Warehousing Market Report Q3 2025, highlighted that with sustained occupier appetite, year-to-date (YTD) leasing activity reached 49.2 mn sq ft, up 32pc YoY, placing the sector on track for another record year.
The report highlights continued momentum from manufacturing, third-party logistics (3PL) and e-commerce occupiers, supported by resilient domestic demand, supply chain diversification, and policy-led industrial expansion.
Grade A facilities remained the preferred choice among occupiers, accounting for 61pc of leased space so far in 2025, compared to 58 per cent during the same period last year, the report highlighted.
Chennai, Mumbai, NCR, Pune and Ahmedabad have all recorded their highest YTD Q3 transaction volumes in three years.
Notably, Chennai has already surpassed its previous full-year peak and is on track for an exceptional 2025 performance.
“The manufacturing sector was the primary driver behind the 62pc YoY growth seen in Chennai’s transaction volumes in YTD Q3 2025 and incidentally, this sector’s occupiers also accounted for a massive 62pc of the area transacted in this market during the period,” the report said.
Mumbai and NCR emerged as standout performers in YTD as well as quarterly terms. Mumbai registered a 123 per cent YoY increase in Q3 2025 and 10 mn sq ft YTD, accounting for 20pc of national volumes so far in 2025.
Delhi NCR surged 93 per cent YoY in Q3 2025 and 50 per cent YoY to 8.8 mn sq ft in the January-September 2025 period, supported largely by manufacturing and 3PL demand. Chennai, Pune, and Bengaluru also posted strong YTD gains, aided by manufacturing-led occupier traction.
Five markets, including Chennai, Mumbai, NCR, Pune and Ahmedabad are at three-year record highs in YTD terms, while YTD volumes this year in Chennai have surpassed annual highs seen previously in that market.
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