Delhi NCR logistics stock to reach 108.6m sq ft by end-2025

Grade A projects are expected to dominate the market.

NCR warehousing stock in Delhi is expected to reach 108.6 million sq ft by the end of 2025, primarily driven by Grade A projects backed by institutional investors, according to a report released by JLL recently. The Delhi-NH8 submarket will maintain its dominance.

“Proposed infrastructure projects, particularly along freight corridors, such as DMIC, WDFC and EDFC, are significantly influencing warehouse demand by improving connectivity between Delhi and other regions in Western and Eastern India,” the report said.

Here’s more from JLL:

Net demand clocked a significant 80% y-o-y growth in H1 2025, reaching 4.13 million sq ft. Of this, 88% was contributed by Grade A facilities, indicating a shift in tenant preference towards good quality spaces. Delhi-NH8 dominated demand in the region.

The 3PL/logistics segment was the major demand driver in the city, followed by light manufacturing sectors, including auto & ancillaries and engineering, together contributing 58% of the demand in H1 2025. Other key demand segments were FMCG, e-commerce and retail.

There is increasing traction from institutional developers and investors in the market

The market expanded significantly in H1 2025 with 4.66 million sq ft of new supply additions. There was increased traction from institutional developers and investors in the market, especially in the Delhi-NH8 submarket.

Vacancy rates increased to 21.4% in H1 2025 due to rising supply from large Grade A developers, including institutional investors, outpacing market demand.

Rents are up 5.3% y-o-y in H1 2025 due to increasing demand for Grade A space

Rents rose by 5.3% y-o-y in H1 2025, driven by increasing demand for high-quality Grade A spaces with superior specifications. Increased traction from institutional investors also pushed rents upwards in the market.

Rents are expected to increase in the upcoming years on the back of rising land prices, upcoming infrastructure projects, as well as increasing investments from institutional developers and investors.