Indian manufacturers lead manufacturing leasing with 34% CAGR 2020-2025
Indian manufacturers are snapping up industrial spaces.
According to Savills India, manufacturing space leasing grew at a rapid 34% CAGR from 2020 to 2025, much faster than the 23% growth seen by multinationals.
The total leased space jumped from just 5.8 million square feet in 2020 to 21.3 million square feet in 2025, and it could hit 32 million square feet by 2030.
Auto sector 31% of manufacturers' leases
The automotive industry is leading the charge, with automotive and auto components accounting for 31% of the space leased by Indian manufacturers between 2020 and 2025, and electrical and electronics and renewable energy sectors following behind.
Companies are also going for bigger units, average lease sizes rose from about 71,000 square feet in 2022 to 94,000 square feet in 2025.
Most of this action is happening in tier-two cities, with Pune remaining the largest market and Hosur and Ahmedabad gaining traction, thanks to better infrastructure and lower costs.
Grade A facilities are also seeing more demand as businesses look for higher-quality spaces.