70% of APAC Occupiers Prefer Warehousing Portfolio Expansion in India over next 2 Years: CBRE Survey

New Delhi, July 9, 2025: Nearly, 70 per cent of APAC occupiers plan to expand their warehousing footprint in India over the next two years, according to a report by CBRE South Asia Pvt. Ltd. titled ‘2025 India Logistics Occupier Survey’.

The growing interest reflects the broader shift towards supply chain diversification as companies aim to reduce dependency on single-market strategies. The sector is anticipating strong demand in Southeast Asia and India across diverse segments, including third-party logistics (3PL), e-commerce, engineering and manufacturing (E&M), auto and auto ancillary and fast-moving consumer goods (FMCG).

Larger deals and modern facilities signal occupiers’ shift towards future-proof, compliant and ESG-aligned warehousing, painting a promising picture of the sector’s forward momentum.

The sector is showing strong confidence in India’s market potential with more than 80 per cent of India-based occupiers (both Indian and global firms with operations in India) planning to expand their warehousing portfolios over the next two years. Despite near-term uncertainties, the country remains a preferred destination for both global and domestic corporate entities.

According to the survey, nearly 90 per cent of India-based respondents expressed an intention to expand their logistics footprint over the next two to five years, indicating sustained long-term optimism.

The I&L sector is charting strong growth driven by institutional capital, supportive regulatory reforms and strategic penetration into Tier 2 and 3 cities. This trajectory is reinforced by the rise of the 3PL segment, increased outsourcing and a growing focus on sustainability and compliance.

Indian occupiers are displaying strong confidence in the country’s logistics sector with over 80 per cent expecting improved business performance in the next two years. This optimism is driven by the country’s growing consumption, enhanced 3PL networks, rising modern logistics stock and the government’s significant infrastructure push. The country’s logistics market, while still evolving, is witnessing rapid improvement in connectivity and cost-efficiency, particularly in non-metro locations.

Key Findings of the 2025 India Logistics Occupier Survey

“The Indian logistics sector is undergoing a transformational growth phase fuelled by robust macroeconomic fundamentals, accelerated infrastructure development and a maturing occupier ecosystem that is increasingly focused on scalability, efficiency and sustainability,” said Anshuman Magazine, Chairman and CEO, India, Southeast Asia, Middle East and Africa, CBRE.

“The insights from our survey reaffirm India’s position as the most preferred logistics destination in the region. With resilient demand drivers, growing institutional participation and future-ready infrastructure, the long-term growth trajectory for India’s logistics sector remains exceptionally strong.”

Ram Chandnani, MD, Leasing, CBRE India, said, “India’s industrial and logistics sector is charting a remarkably robust growth trajectory propelled by significant institutional capital, progressive regulatory reforms and strategic expansion into tier-II and tier-III cities. This strong momentum is further underscored by the growing prominence/prevailing dominance of the 3PL segment, increased outsourcing and a growing emphasis on sustainability, leading to more than 80 per cent of occupiers anticipating stronger business performance ahead.”