Delhi warehouse supply to hit 109m sq ft in 2025

Q4 is expected to welcome 1.3m sq ft of new supply.

According to a JLL report, Delhi’s infrastructure projects are expected to boost warehousing demand, with supply for the last quarter of the year projected at 1.3 mn sq ft.

“NCR warehousing stock is projected to reach 109 mn sq ft by 2025, primarily driven by Grade A projects backed by institutional investors. The Delhi-NH8 submarket will maintain its high level of activity, leading in both supply and demand terms,” the report added.

Here’s more from JLL:

Proposed infrastructure projects, freight corridors such as DMIC, WDFC, and EDFC, are significantly influencing demand by improving connectivity between Delhi and other regions in India. Overall vacancy expected to hover below 15% over the next four years.

Strong growth continues with 6.4 mn sq ft in YTD Q3 CY2025

YTD Q3 2025 saw warehouse demand surge 54% y-o-y as net absorption hit 6.4 mn sq ft, led by the Delhi-NH8 submarket. This growth reflects increasing logistics needs and strategic location preferences in the region.

3PL had the maximum contribution to the increasing demand in this quarter. Electronics, white goods, fast-moving consumer goods, engineering, and e-commerce sectors were also active during the quarter.

Grade A vacancy down 80 bps q-o-q to 10.8%

The warehouse market expanded significantly with 1.86 mn sq ft of new space added in YTD Q3 2025, out of which 49% was Grade A quality. The Delhi – NH8 submarket led in terms of new supply and demand.

Overall vacancy reduced slightly to 20.8% in Q3 2025 due to demand outpacing new supply. Grade A space also saw a notable decrease with vacancy declining 10.8% due to increased demand vis a vis new supply additions.

Prime Grade A demand spike drives 4.5% y-o-y rental surge, reflecting high-quality space leasing

Robust demand for Grade A warehouse space, coupled with stable vacancy and growing interest from institutional developers and investors, has driven a significant 4.5% y-o-y increase in rentals.

Rents are predicted to keep rising in the near term, largely due to increased investment from major institutional players such as Indospace, Horizon Industrial Parks, LO-GOI, Ascendas, Welspun, etc. Rising land costs also contribute to this upward trend.