India emerges as APAC's top logistics hub
is quickly emerging as the most preferred warehousing destination in the Asia-Pacific region, as nearly 70% of APAC occupiers plan to expand their logistics footprint in the country over the next two years.
According to
CBRE
's recently released 2025
India Logistics Occupier Survey
, which highlights strong occupier confidence in India's industrial and logistics (I&L) sector. The growing intent is a reflection of shifting global supply chain strategies, a surge in domestic consumption, and the availability of
modern logistics infrastructure
.
The survey was conducted between March and April 2025 and gathered over 380 responses from logistics occupiers across the Asia-Pacific region, including over 100 from India-based firms. More than 80% of India-based occupiers, including both domestic and multinational corporations, expressed plans to expand their warehousing operations in the country over the next two years, signaling long-term optimism and continued investment momentum. This comes despite prevailing macroeconomic uncertainties, indicating India's strong resilience and rising strategic importance in the global supply chain ecosystem.
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According to CBRE, this demand is largely driven by India's expanding third-party logistics (3PL) networks, improving infrastructure, and ongoing government initiatives to boost logistics efficiency. Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said ' India's logistics sector is going through a transformational phase, underpinned by strong macroeconomic fundamentals, fast-tracked infrastructure development, and an evolving occupier ecosystem that is focused on scalability, efficiency, and sustainability'. He added that the insights from the survey reaffirm India's position as the most preferred logistics destination in the APAC region.
While the sentiment is broadly positive, the report also points to several key challenges that occupiers face in their expansion journey. Cost escalation emerged as the most pressing concern, with 55% of respondents citing rising land prices and construction costs as major hurdles. This is followed by economic uncertainty, with 49% expressing concern over global trade volatility and its potential impact on business planning. Additionally, 46% of respondents highlighted increasing competition for high-quality logistics assets as a growing challenge, especially in key urban clusters where modern Grade A warehouses are in high demand.
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Despite these challenges, occupiers are showing a clear shift in preference towards high-quality, future-ready infrastructure. The survey found that 84% of respondents are actively moving from older, non-compliant facilities to newer, investment-grade warehouses. These modern assets are not only better equipped with automation capabilities and improved transportation access but also meet evolving regulatory and ESG (environmental, social, and governance) compliance standards. Occupiers are increasingly prioritizing features such as proximity to highways and urban markets, scalability, and sustainability when selecting new sites for expansion.
Technology and ESG have now moved to the center of strategic decision-making for logistics occupiers. According to the survey, 57% of occupiers are investing in automation technologies such as automated storage and retrieval systems (AS/RS) to improve operational efficiency. Furthermore, ESG-related factors like renewable energy integration, green building certifications, and smart energy systems are playing a pivotal role in site selection and investment decisions. Occupiers recognize that future-ready infrastructure is essential not just for cost efficiency but also for attracting institutional capital and fulfilling global sustainability commitments.
Ram Chandnani, Managing Director – Leasing,
CBRE India
, said that the industrial and logistics sector's growth trajectory is being powered by strong institutional interest, forward-looking regulations, and expansion into tier-II and tier-III cities. 'This includes emerging logistics hubs such as Nagpur, Coimbatore, Indore, Lucknow, and Jaipur, which are gaining traction due to improving infrastructure and affordability. These cities are becoming key nodes in India's expanding logistics network, offering businesses a balance between scale, cost-effectiveness, and connectivity', he said.
The report underlines that India's warehousing stock, currently estimated at over 400 million square feet, is likely to double by the end of the decade. This growth is being driven by strong demand from sectors such as e-commerce, FMCG, engineering, auto & ancillary, and manufacturing. Government initiatives like the Gati Shakti master plan and the National Logistics Policy are expected to further streamline logistics operations and reduce turnaround times, making India an even more attractive proposition for global and domestic occupiers.
Going ahead, India's logistics sector is poised for accelerated expansion. The CBRE survey indicates that occupiers are not just looking for space, but for strategic assets that align with long-term business goals, sustainability standards, and
supply chain resilience
. With rising demand, expanding warehousing footprints, and increasing alignment with global best practices, India is well on track to becoming Asia-Pacific's leading logistics powerhouse.
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