Jaipur: The warehousing market in the Pink City witnessed strong momentum in 2025, with total warehouse transactions reaching 1.31 million square feet, marking a 24% year-on-year increase from 1.06 million square feet in 2024, according to a report by Knight Frank India. The growth places Jaipur as the third-highest transacting Tier-II warehousing market in the country after Lucknow and Surat. The report highlighted that Jaipur is steadily emerging as a regional logistics and distribution hub, supported by its strategic location within a 300-kilometre radius of the national capital and strong highway connectivity. The city is connected by National Highway 48, which enables efficient distribution of goods across Rajasthan and nearby consumption centres. Manufacturing companies remained the primary drivers of warehousing demand in the city, accounting for 35% of the total leasing activity during the year. This was followed by third-party logistics (3PL) operators and retail players, each contributing 19% to overall transactions. The report noted that companies across sectors are increasingly diversifying their distribution networks beyond Tier-I cities in order to improve regional access and meet rising consumer expectations for faster deliveries. While the share of e-commerce transactions declined from 27% in 2024 to 15% in 2025, the fast-moving consumer goods (FMCG) segment gained prominence, increasing its share from 4% to 11%. Several large-format leasing transactions were also recorded during the year, with key occupiers taking spaces in the range of 0.1–0.2 million square feet. Cluster-wise, the southern peripheral NH-48 corridor continued to dominate Jaipur’s warehousing landscape, accounting for 89% of total annual transactions in 2025, broadly similar to the 87% share recorded in the previous year. Areas such as Mahindra World City and Bagru emerged as preferred warehousing locations due to their proximity to major highways and industrial clusters. The study also found that occupiers in Jaipur continue to prefer Grade B warehousing facilities, which accounted for 92% of total transactions in 2025. The dominance of Grade B spaces is largely attributed to the availability of such stock from local developers and the cost sensitivity of companies expanding operations in Tier-II markets. Rental levels across the city remained largely stable during the year, although certain pockets along the NH-48 corridor saw moderate rental growth of 5–15% year-on-year, driven by improving demand and limited availability of quality warehouse stock.
