Bengaluru warehouse stock to reach 70m sq ft this year

Thanks to projects from key institutional developers.

Bengaluru’s warehousing sector is eyeing year-end stock to hit 70 mn sq ft according to a JLL report, driven by new supply being completed by key institutional developers such as Indospace, Ascendas, Prologis, etc. Hoskote-Devanahalli remains a key hotspot with strong supply-demand.

The report adds: “Bengaluru warehousing demand is likely to get a boost from infrastructure projects like BMIC and CBIC corridors, that will improve connectivity to West & East regions of India. Strong demand fundamentals are likely to keep vacancy under 8% over the next 4 years.”

Here’s more from JLL:

As of YTD Sep 2025, the market saw net absorption reaching 8.1 mn sq ft, a 52% increase compared to the previous year. Among the submarkets, Hoskote-Devanahalli had the largest share, followed by Hosur Road – Hosur City.

Engineering and FMCG drove 55% of quarterly demand, with 3PL/Logistics, Home & Construction, and Retail also contributing significantly. Occupiers are increasingly seek high-quality, compliant spaces, boosting demand for Grade A warehouses across the market.

Over 90% of new Grade A supply is in institutionally backed projects

For YTD 2025, the market has witnessed new supply addition of 8.2 mn sq ft, with 77% being Grade A quality amid increasing traction from institutional developers and investors.

The vacancy decreased by 60 bps y-o-y to reach 9.9%. Notably, the vacancy of prime grade A spaces is considerably low at 3.2% as of Q3 2025.

Increase in demand of prime Grade A spaces has resulted in 5.5% y-o-y rental appreciation

The Grade A rents have risen by 5.5% y-o-y on the back of increased demand, increased traction from institutional developers/ investors and an increase in land rates.

The upward trend in rents is expected to continue in the foreseeable future, primarily propelled by heightened investments from institutional investors and developers such as Indospace, Ascendas, Welspun, etc.