India’s manufacturing leasing activity is expected to touch 33.7 million sq ft by 2027 across the top eight cities, accounting for 46% of the country’s total industrial and warehousing absorption, according to a report released on Wednesday.
The report by JLL highlights how the domestic manufacturing sector is reshaping India’s industrial real estate landscape through strong leasing momentum and changing space requirements.
Manufacturing leasing has already seen robust growth, rising to 22.1 million sq ft in 2024. Demand is projected to reach 34 million sq ft by 2027, underscoring the sector’s expanding influence.
Demand for Grade A industrial properties has surged significantly – from 70% in 2019 to 82% in 2024, and further to 87% by Q3 2025 in major cities. This trend is being propelled by industries such as automotive and ancillaries, electronics and white goods, and engineering, all of which require sophisticated, high-specification facilities.
“The seven-fold increase in manufacturing leasing activity between 2020 and 2024 indicates a major shift in manufacturers’ real-estate strategies, with more companies opting for leased land and buildings,” said Yogesh Shevade, Head of Industrial and Logistics, India, JLL.
He noted that most manufacturers prefer Grade A facilities because they support automation, offer superior infrastructure, and provide a more sustainable operating environment.
The report also points to rising demand driven by enhanced building specifications, tighter hygiene standards, green and sustainable design features, and stronger safety compliance—factors that set modern manufacturing spaces apart from traditional logistics facilities.
As of Q3 2025, Pune and Chennai emerged as the top markets, together accounting for 75% of total manufacturing leasing demand among the eight major cities. Other hubs -Bengaluru, Mumbai and Delhi-NCR – are also witnessing strong traction, further boosting the nationwide leasing momentum.
(IANS)
