Jaipur Warehousing Market Records Robust 24% Growth in 2025, Secures Third Spot Among Tier-II Cities
According to a comprehensive report by Knight Frank India, the warehousing market in Jaipur, often referred to as the Pink City, demonstrated strong momentum throughout 2025. Total warehouse transactions soared to an impressive 1.31 million square feet, marking a substantial 24% year-on-year increase from the 1.06 million square feet recorded in 2024. This significant growth solidifies Jaipur's position as the third-highest transacting Tier-II warehousing market in the country, trailing only behind Lucknow and Surat in terms of activity and volume.
Strategic Location and Connectivity Fuel Jaipur's Emergence as a Logistics Hub
The report underscores that Jaipur is steadily emerging as a pivotal regional logistics and distribution hub, a development largely supported by its advantageous strategic location. Situated within a 300-kilometre radius of the national capital, New Delhi, the city benefits from robust highway connectivity, particularly through National Highway 48. This critical infrastructure enables the efficient distribution of goods not only across Rajasthan but also to nearby consumption centres, enhancing supply chain efficiency and reducing logistical bottlenecks.
Manufacturing Sector Leads Demand, Followed by 3PL and Retail Players
In terms of sectoral demand, manufacturing companies remained the primary drivers of warehousing activity in Jaipur during 2025, accounting for a significant 35% of the total leasing activity. This was closely followed by third-party logistics (3PL) operators and retail players, each contributing 19% to the overall transactions. The report highlights a broader trend where companies across various sectors are increasingly diversifying their distribution networks beyond Tier-I cities. This strategic shift aims to improve regional access and meet the escalating consumer expectations for faster and more reliable deliveries, thereby optimizing operational efficiency.
Shift in Sectoral Shares: E-commerce Declines, FMCG Gains Prominence
While the share of e-commerce transactions experienced a notable decline from 27% in 2024 to 15% in 2025, the fast-moving consumer goods (FMCG) segment gained considerable prominence. The FMCG sector increased its share from a modest 4% to 11%, reflecting changing market dynamics and consumer preferences. Additionally, several large-format leasing transactions were recorded during the year, with key occupiers securing spaces in the range of 0.1 to 0.2 million square feet, indicating sustained confidence in Jaipur's warehousing infrastructure.
NH-48 Corridor Dominates, Grade B Facilities Preferred by Occupiers
Cluster-wise, the southern peripheral NH-48 corridor continued to dominate Jaipur's warehousing landscape, accounting for a commanding 89% of total annual transactions in 2025. This figure is broadly similar to the 87% share recorded in the previous year, underscoring the corridor's enduring appeal. Areas such as Mahindra World City and Bagru have emerged as preferred warehousing locations due to their proximity to major highways and established industrial clusters, offering logistical advantages and operational convenience.
The study also revealed that occupiers in Jaipur continue to show a strong preference for Grade B warehousing facilities, which accounted for a substantial 92% of total transactions in 2025. The dominance of Grade B spaces is largely attributed to the ample availability of such stock from local developers and the cost sensitivity of companies expanding their operations in Tier-II markets. This preference highlights a pragmatic approach to balancing quality and affordability in warehouse selection.
Rental Stability with Moderate Growth in Key Pockets
Rental levels across Jaipur remained largely stable throughout the year, providing a predictable cost environment for businesses. However, certain pockets along the NH-48 corridor witnessed moderate rental growth of 5% to 15% year-on-year. This increase was driven by improving demand and the limited availability of quality warehouse stock, reflecting the market's responsiveness to supply-demand dynamics and the growing attractiveness of strategic locations within the city.
