Industrial and Warehousing Demand in India Rises 15% in Q1 2025

In the first quarter of 2025, demand for industrial and warehousing space in India increased by 15%. This rise shows the growing need for storage and manufacturing facilities as businesses continue to expand in the country.

The increase in demand is mainly driven by the booming e-commerce sector, which requires more warehouses to store goods and deliver them quickly to customers. Industries such as logistics, retail, and manufacturing are also growing and need more space for operations.

Real estate experts believe that the demand for industrial and warehousing spaces will continue to grow. As India’s economy recovers and more businesses set up operations, the need for infrastructure like warehouses and manufacturing facilities will increase. In addition, the government’s focus on improving infrastructure and creating industrial corridors is helping to support this growth.

Companies that rely on efficient supply chains are also expanding their operations in India. This includes sectors such as fast-moving consumer goods (FMCG), pharmaceuticals, and electronics. These industries need large, well-located warehouses to ensure smooth operations and quick delivery to customers across the country.

Experts say the growth in demand is not just limited to major cities but also includes smaller towns and industrial hubs. This trend is helping to balance growth across the country and create more job opportunities in different regions.

Despite the increase in demand, there are challenges. One of the biggest issues is the rising cost of land and construction. Developers are looking for ways to build more efficiently and keep costs manageable while meeting the growing demand. Another challenge is the shortage of skilled labor, which is affecting the speed of construction projects.

Overall, the growth in industrial and warehousing demand in India signals a strong economy and a positive outlook for businesses and real estate developers. As companies continue to invest in infrastructure, the demand for space is expected to remain high throughout 2025 and beyond.