Tier-I Cities Dominate with 79% Warehousing Space Absorption: Savills

According to global real estate advisory firm Savills India, the country's industrial and logistics real estate sector witnessed strong growth in Q1 2025, with absorption reaching 16.0 million sq. ft.—an 18.5% year-on-year (Y-o-Y) increase from 13.5 million sq. ft. in Q1 2024. Tier-I cities accounted for 79% of this absorption, while Tier-II and Tier-III cities contributed the remaining 21%.

Picture courtesy: CJ Darcl

On the supply front, the sector delivered 15.9 million sq. ft. in Q1 2025, reflecting a 23.3% Y-o-Y growth. Tier-I cities contributed a substantial 12.4 million sq. ft. (78%), while Tier-II and Tier-III cities added 3.6 million sq. ft. (22%). This robust supply across city tiers highlights the market's alignment with the growing demand.