India’s industrial and warehousing real estate market saw a gross absorption of 18.3 million square feet in the first quarter of 2026, with manufacturing contributing 28% of the total activity. The sector’s cumulative stock across eight major cities reached 514 million sq ft, showing a positive trend.
The market is on track to expand to around 850 million sq ft by 2030, indicating an 11.4% CAGR increase from current levels. This growth underscores India’s emergence as a key global manufacturing and logistics hub. The industrial and warehousing market is evolving with a rising focus on Grade A space, which now constitutes 57% of the total market stock.
Manufacturing activities accounted for 5.1 million sq ft of gross absorption in Q1 2026, following a strong performance in 2025. Engineering transactions dominated the manufacturing sector with a 47% share, while the auto and ancillaries segment contributed significantly at 32%.
Warehousing activities drove 72% of the gross absorption in Q1 2026, with third-party logistics playing a crucial role. Sectors like E-Commerce, FMCG, FMCD, and Retail also contributed to the demand. Mumbai and Pune led the absorption with a combined 43% share, followed by Delhi-NCR at 20%, Bengaluru at 13%, and Chennai at 12%.
