Delhi-NCR emerges as largest third-party leasing hub in India: Report

September 25, 2025

New Delhi: Delhi-NCR has emerged as the largest third-party logistics (3PL) hub in India, accounting for 25 per cent of total leasing activity in the industrial and logistics (I&L) sector since 2021, according to a report released on Thursday.

Mumbai followed closely with a 24 per cent share, while Bengaluru stood at 16 per cent.

Six Cities Dominate Leasing Activity

As per CBRE, the top six cities — Delhi-NCR, Mumbai, Bengaluru, Chennai, Kolkata, and Hyderabad — together accounted for nearly 70 per cent of the country’s total 3PL leasing activity between 2021 and the first half of 2025 (H1 2025).

3PL companies, which manage end-to-end supply chain and logistics operations for clients, have emerged as the largest demand drivers in India’s logistics real estate market, contributing 40–50 per cent of total leasing activity between 2021–2024, and more than 30 per cent in H1 2025.

Growth Drivers and Emerging Hubs

“Delhi-NCR’s strategic location, robust infrastructure, and thriving e-commerce sector have made it an important hub for the industrial & logistics sector,” said Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE.

He added that Tier-II and Tier-III cities are fast emerging as new growth centres, with rising consumption and lower land costs likely to encourage 3PL players to establish localized hubs closer to consumption markets.

Preference for Asset-Light Models

The report highlighted a growing trend among 3PL companies to remain asset-light:

• 60% of India-based 3PL firms prefer leasing space in multi-tenanted buildings within the next 24 months.

• 28% favor build-to-suit developments.

• 22% opt for purchasing existing assets.

This strategy allows companies to scale quickly while keeping costs low.

Shift to Smart Warehousing

Technology adoption is reshaping the sector. About 76 per cent of surveyed 3PL firms are now using warehouse management software. In addition, companies are increasingly deploying:

• IoT sensors

• Conveyor and sortation systems

• Goods-to-Person picking systems

These solutions signal a broader shift towards intelligent, automated, and future-ready warehouses.

Big-Box Leasing on the Rise

Between 2021 and H1 2025, 3PL companies were the primary drivers of “big-box” leasing (spaces over 100,000 sq. ft.), reflecting the need for scalable warehousing solutions to support demand from e-commerce, retail, and manufacturing.

“3PL players want to expand rapidly to match the demand arising from the growth of e-commerce and quick commerce, along with the infrastructure push from the government,” said Ram Chandnani, Managing Director, Leasing Services, CBRE India.