The industrial and warehousing demand in India’s top eight cities saw a significant 22% annual growth in the January-March period, totaling 11 million square feet of leasing. Delhi-NCR led the demand, accounting for 28%, followed by Chennai at 21%, as per the Colliers report. Hyderabad and Bengaluru also experienced strong leasing activity, with Grade A industrial and warehousing space uptake in Q1 2026 growing 2-3 times compared to the previous year.
Third-party logistics (3PL) players were a key driver of demand during the quarter, constituting about one-third of the space uptake, according to the report. The demand from 3PL in Q1 2026 was 1.8 times higher than that of Q1 2025, supported by expanding logistics needs and supply chain modernization. E-commerce and automobile sectors also saw robust leasing activities during the quarter.
Vijay Ganesh, Managing Director of Industrial and Logistics Services at Colliers India, highlighted the cautious approach developers are likely to take in supply additions due to ongoing geopolitical crises and supply chain disruptions. He emphasized the importance of continued policy support to boost domestic manufacturing and logistics capabilities to mitigate potential risks.
E-commerce and automobile players collectively represented about 32% of the leasing activity in the quarter, with both sectors leasing over 1.5 million square feet. FMCG and electronics companies also experienced significant leasing growth, more than doubling their leasing activity on an annual basis. Vimal Nadar, National Director & Head of Research at Colliers India, pointed out the prolonged West Asia crisis as a critical factor that could impact the Indian economy and the industrial and warehousing sector in the coming quarters.
