India’s warehousing sector has surpassed 610 million sq ft of total stock as of 2025, with the top eight Tier I markets, NCR Delhi, Mumbai, Pune, Bengaluru, Chennai, Hyderabad, Ahmedabad and Kolkata, accounting for 82% of the total stock at 498 million sq ft, a report by JLL said on Feb 5.
The 14 emerging Tier II cities, including Lucknow, Chandigarh–Rajpura, Kochi and Nagpur, together hosted 112 million sq ft. While Tier I cities recorded a net absorption of 55 million sq ft in 2025, Tier II cities saw 12 million sq ft of absorption, a JLL report said.
India’s warehousing market is on course for 28% growth over the next five years, with total stock projected to reach 850 million sq ft by 2030, adding 240 million sq ft, according to the JLL report released at LogiMAT India 2026 in Mumbai.
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Grade A facilities comprise 53% of total warehousing stock
The report said that Grade A facilities now comprise 53% of total warehousing stock. “Institutional-backed Grade A assets now account for 38% of quality stock, bringing standardized development, enhanced specifications, and attracting global occupiers. Logistics (3PL) and e-commerce lead storage demand, while light manufacturing, driven by auto, engineering, and electronics, is growing, reflecting a shift in occupier profiles,” it said.
Despite the continued dominance of Tier I cities, JLL noted that Tier II markets are gaining momentum, supported by expanding consumption, improving infrastructure and cost efficiencies. Cities such as Lucknow and Kochi have each crossed one million sq ft of annual absorption, reflecting occupiers’ strategy to build distributed, resilient supply chains.
“Warehouses are becoming smart thanks to automation growing from barely 10% to three-quarters by 2030 according to industry projections. Typically, these investments pay for themselves in just two to three years. When we hit 850 million sq ft by 2030, these will not just be storage buildings anymore—they'll be part of the smart logistics system powering India's economy, combining the best of technology, strategic location, and smart capital to compete with any major economy in the world,” Yogesh Shevade, Head, Logistics and Industrial, India, JLL said.
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Technology and automation are reshaping the sector
The report pointed out that warehousing is fast transitioning into automation-led fulfillment hubs, with industry estimates suggesting automation adoption could rise from about 10% in 2025 to nearly 76% by 2030. Driven by SKU complexity, faster delivery expectations, labour constraints and space optimisation, automation investments are increasingly viewed as strategic, with payback periods of two to three years.
“As India races toward 850 million sq ft of warehousing stock by 2030, the sector is expected to witness convergence of geographic diversification, institutional investment, and automation integration, transforming basic storage facilities into technology-driven fulfillment ecosystems. In this new era, operational efficiency, sustainability, and advanced automation won't just be competitive advantages; they will be the fundamental pillars supporting India’s emergence as a global logistics powerhouse,” it said.