Hyd warehousing transactions touch 3.4 mn sq ft in 2025
Hyderabad: Hyderabad’s warehousing market recorded 3.4 million sq. ft. of transactions in 2025, marginally lower than 3.5 million sq. ft. in 2024, reflecting a 5 per cent year-on-year decline, according to a report by global property consultancy Knight Frank India.
The report, titled India Warehousing Market 2025, notes that despite the slight moderation in transaction volumes, the city’s logistics real estate sector remains stable, supported by strong occupier interest, improving infrastructure connectivity, and a steady pipeline of requests for proposals (RFPs) across multiple sectors.
The study highlights that Grade A warehouses accounted for 55 per cent of total transactions in Hyderabad, indicating occupiers’ continued preference for modern, compliant logistics infrastructure.
3PL and Manufacturing Drive Demand
The report found that third-party logistics (3PL) and manufacturing companies were the primary drivers of warehousing demand, collectively accounting for 66 per cent of total leasing activity in 2025. This was followed by the e-commerce sector, which contributed 21 per cent of the total transactions.
Overall, warehousing and storage operations dominated space absorption, accounting for 92 per centof the total transactions during the year. Industrial activity, including light manufacturing and assembly operations within warehousing parks, constituted the remaining 8%. The dominance of storage and logistics functions reflects Hyderabad’s growing importance as a key regional distribution hub, particularly for South and Central India.
