Thursday, 5 March 2026
India’s real estate investment market recorded strong activity in 2025, with the industrial and logistics segment emerging as one of the primary destinations for institutional capital. Data published by leading property consultancies indicate that overall real estate investments reached multi-year highs, supported by improving financing conditions, stable asset performance and sustained occupier demand.
The final quarter of 2025 was particularly active. Industry reports show that quarterly investment volumes exceeded the $4 billion mark, making it one of the strongest quarters on record for Indian real estate. Industrial and logistics assets accounted for a substantial share of these transactions, reflecting investor confidence in the long-term fundamentals of the sector. Market participants attribute the year-end surge in part to improved liquidity conditions and expectations that yields in core assets may tighten in the coming years.
Leasing fundamentals in the warehousing sector remained solid throughout the year. According to market data from Cushman & Wakefield, Colliers and JLL, annual industrial and logistics absorption across major Indian cities ranged between approximately 45 and 50 million square feet in 2025, reflecting steady year-on-year growth. Demand was concentrated in Grade A facilities, which continued to dominate leasing across primary logistics hubs such as Delhi NCR, Mumbai, Bengaluru, Chennai, Pune and Hyderabad.
Total Grade A warehousing stock across India’s leading markets surpassed 500 million square feet by late 2025, reinforcing the institutional scale of the segment. Third-party logistics providers, e-commerce operators and manufacturing companies were among the most active occupiers, driven by supply chain optimisation and expanding distribution networks.
Several high-value portfolio transactions underscored the depth of investor appetite. In November 2025, CPP Investments and logistics developer IndoSpace announced the acquisition of a portfolio of fully operational logistics parks across major Indian markets in a transaction valued at approximately $471 million. The portfolio included assets in key distribution corridors such as Pune, Chennai and Delhi NCR. Around the same period, Brookfield India Real Estate Trust completed additional acquisitions, highlighting sustained capital raising capacity and continued investor interest in income-generating real estate platforms.
Institutional investors have increasingly focused on large, stabilised logistics portfolios that meet global standards in terms of governance, sustainability and lease structure. The concept of assembling “REIT-ready” warehousing assets has gained traction, with developers and investors seeking to build scalable platforms aligned with long-term capital.
The sector continues to benefit from structural drivers including domestic manufacturing expansion, supply chain diversification strategies, growth in e-commerce and infrastructure development such as freight corridors and logistics parks. These factors have supported rental stability and maintained relatively attractive yield spreads compared with other mature markets in Asia.
Looking ahead to 2026, industry analysts expect industrial and logistics real estate to remain a priority for both domestic and international investors. While global macroeconomic conditions will influence capital flows, India’s warehousing sector is viewed as structurally supported by consumption growth and supply chain modernisation. Following a year of strong deal closures and portfolio consolidation, the segment enters 2026 with sustained institutional momentum and a growing role within India’s broader real estate investment landscape.
Source: CIJ.World India Research & Analysis Team
