Mumbai, Kolkata and NCR power sector revival despite year-ago dip
NEW DELHI, Nov 13 (The CONNECT): India’s warehousing and logistics sector turned a decisive page in Q3 2025, clocking 9.2 million sq ft of absorption—a robust 64 percent rebound from the previous quarter—according to occupier-focused advisory firm Vestian. The recovery, though strong, still stood 36 percent below the record highs achieved a year earlier.
Mumbai led the revival with commanding force, contributing 47 percent of pan-India absorption. The city logged 4.29 million sq ft during the quarter, marking a dramatic 377 percent surge over Q2 and a 10 percent year-on-year rise. Renewed occupier interest in Bhiwandi and Panvel—together responsible for nearly 96 percent of Mumbai’s uptake—fuelled this sharp turnaround.
NCR emerged as the second-largest driver with 1.28 million sq ft, up 83 percent sequentially despite a 40 percent drop from last year’s elevated levels. Chennai, too, maintained steady momentum, posting 1.13 million sq ft—its highest in seven quarters—representing a 151 percent jump over Q2 and a 38 percent rise compared to Q3 2024.
Kolkata delivered its strongest performance on record with 1.26 million sq ft. The city’s absorption rose an extraordinary 950 percent quarter-on-quarter and 186 percent year-on-year, reflecting a surge in demand after prolonged sluggishness.
Pune, once a consistent performer, continued its downward slide, falling to 0.64 million sq ft—down 31 percent from the previous quarter and a steep 87 percent below the same period last year. Bengaluru also recorded significant weakness, slipping to just 0.13 million sq ft—a 94 percent sequential and 90 percent annual decline—its lowest among the top seven cities. Hyderabad remained comparatively stable at 0.47 million sq ft, up 7 percent from Q2 though 14 percent below last year.
Shrinivas Rao, FRICS, CEO of Vestian, said the latest numbers indicate meaningful recovery despite uneven city-level performance. “After a subdued previous quarter, the warehousing and logistics sector has shown clear signs of revival in Q3 2025, with Mumbai, Kolkata and NCR leading absorption. The resurgence in occupier demand across key micro-markets, coupled with renewed momentum in the e-commerce and 3PL segments, underscores the sector’s growing depth and diversification. As occupiers focus on network optimization and grade-A assets, India’s warehousing and logistics landscape is reshaping for a stronger performance in the upcoming quarters.”
With multiple high-demand markets roaring back and segmental demand deepening, the sector appears poised for a broader upswing in the months ahead.
