Manufacturing Leads India’s Warehousing Growth in Q3 2025 as overall absorption record 16% YoY growth: Knight Frank

Knight Frank India, a leading international property consultancy, in its latest edition of India Industrial and Warehousing Market Report Q3 2025, recorded a 16% year-on-year (YoY) increase in warehousing demand to 17.1 mn sq ft in the quarter. With sustained occupier appetite, year-to-date (YTD) leasing activity reached 49.2 mn sq ft, up 32% YoY, placing the sector on track for another record year.

The report highlights continued momentum from manufacturing, 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 61% of leased space so far in 2025, compared to 58% in the same period last year.

Manufacturing strengthens lead; E-commerce surges sharply

Manufacturing occupiers (excluding FMCG and FMCD) maintained their lead as the largest demand driver, contributing 44% of total transactions in Q3 2025 and 45% YTD. The sector clocked a 56% YoY increase in volumes in the first nine months of 2025.

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