DHL Logistics Private Limited has renewed its lease for 3.17 lakh square feet of warehousing space in Panvel near Mumbai with Ascendas Panvel FTWZ Private Limited, a CapitaLand Group entity. The lease, effective from August 1, 2024, is set for five years at a monthly rent of ₹1.80 crore, equating to ₹56.70 per square foot, with a 5% escalation effective June 2025. A security deposit of ₹14.11 crore has also been submitted, according to property registration documents accessed by Propstack.
The leased facility is part of the Ascent Free Trade and Warehousing Zone (FTWZ) in Panvel, strategically located near the upcoming Navi Mumbai International Airport. The city is increasingly gaining prominence as a logistics hub due to its connectivity and infrastructure, attracting major players in warehousing and supply chain operations. DHL, a global logistics company, operates more than 21 million square feet of warehouse space across India and serves over 50,000 locations worldwide.
The lease reflects broader trends in India’s industrial and warehousing sector. Knight Frank India’s half-yearly India Warehousing Market Report noted a 42% year-on-year growth in leasing volumes across the top eight cities, reaching 32.1 million square feet. Manufacturing-led demand accounted for a significant 71% increase, contributing 45% of total leasing transactions. There is also a notable shift toward higher-grade facilities, with 63% of leased space now classified as Grade A, up from 54% the previous year.
Pan-India, warehouse stock surpassed 500 million square feet in the first half of 2025, with Grade A facilities constituting 75% of new supply. Vacancy rates fell from 13.1% to 12.1% as demand outpaced supply. Among cities, Mumbai led with 7.5 million square feet of leased space, reflecting a 63% increase year-on-year. Pune and Chennai also recorded substantial growth, with 76% and 135% increases, respectively, driven primarily by the manufacturing sector.
Earlier in 2025, Mahindra Logistics leased 2.97 lakh square feet of industrial space near Pune for a monthly rent of ₹71.37 lakh over five years, signaling strong regional demand for industrial and logistics properties. Similarly, Indospace secured 1.2 lakh square feet in Pune, indicating rising interest in strategically located, high-grade warehouse assets.
The Panvel lease underscores the city’s emerging role as a critical logistics node in India’s growing industrial landscape. Proximity to the Navi Mumbai airport, improved road and rail connectivity, and the availability of modern warehousing infrastructure make Panvel an attractive location for logistics operations. Analysts note that such developments align with broader trends of global supply chain realignment, government infrastructure investments, and manufacturing expansion under government schemes such as the Production-Linked Incentive (PLI) programs.
.png)