The report also shows that manufacturing companies are increasingly adopting lease-first strategies to optimise capital allocation. Ready-built and built-to-suit leased facilities provide “capex-light” solutions, enabling manufacturers to redirect financial resources toward core competencies while accessing fully functional, well-equipped facilities. “Ready-built facilities are gaining market share due to accelerated move-in timelines, with over 76% of ready-built facility requirements concentrated in Pune, Chennai, and NCR markets from 2019 through Q3 2025.”
In the rental market, the report shows Grade A light manufacturing space rents across eight major cities have experienced consistent growth over the past five years, with projected annual appreciation of 4-6% driven by increasing demand and investment pipeline from engineering, auto & ancillaries, and electronics sectors. “Manufacturing space rental rates demonstrate notable premiums over standard Grade A warehouse facilities due to stringent building specifications and compliance requirements, reflecting the sector’s sophisticated operational needs.”
Highlighting the role of advanced manufacturing sectors in India’s manufacturing growth, the JLL report says India is intensifying its strategic focus on eight advanced manufacturing sectors—electric mobility, renewable energy, semiconductors, medical devices, precision tools, aerospace & defence, cellular and related electronics components, and heavy equipment. “Driven by robust government initiatives and targeted incentives, this push aims to achieve 25% manufacturing contribution to GDP, supporting India’s journey toward Viksit Bharat (Developed Nation) by 2047.”
In its outlook for the sector, JLL says the manufacturing sector’s transformation of India’s industrial & logistics real estate market reflects broader economic trends toward advanced manufacturing capabilities, quality enhancement, and operational efficiency. “Companies entering or expanding within India’s manufacturing landscape should prioritise Grade A facilities in established clusters, while leveraging lease structures to optimise capital deployment and operational flexibility.”