Industrial and warehousing leasing in India’s major cities saw robust activity in the first half of 2026, totaling nearly 22 million sq ft, marking a 12% increase from the previous year. According to a report by Colliers, new supply surpassed demand with approximately 25 million sq ft of completions during this period.
Delhi-NCR and Chennai jointly represented more than 45% of the leasing activity in the first half of 2026, while Mumbai, Pune, and Bengaluru each saw over 2 million sq ft of Grade A uptake, showcasing strong occupier demand in key logistics hubs. The report highlighted that third-party logistics (3PL) companies led around 30% of the total demand, followed by engineering at 21% and e-commerce at 16%.
In the second quarter of 2026, there was a slight decline in demand compared to the first quarter due to disruptions in the supply chain stemming from the ongoing conflict in West Asia. Grade A space uptake decreased by 1% on a quarterly basis, with approximately 11 million sq ft of leasing in Q2 2026. The report suggested that with a renewed focus on enhancing domestic manufacturing capabilities, overall demand may rise in the coming quarters, provided global uncertainties are contained.
Vijay Ganesh, Managing Director of Industrial and Logistics Services at Colliers India, noted the significant annual growth despite challenges in the second quarter. Cities like Pune, Ahmedabad, and Kolkata experienced growth rates of 30% and above, indicating a more diverse demand landscape. The report also emphasized that infrastructure development, domestic manufacturing expansion, and stable global conditions are likely to support the growth of the industrial and warehousing sector through 2026.
Industrial and warehousing space utilization continued to concentrate in specific high-performing logistics clusters, with areas like Bhiwandi in Mumbai and Farukh Nagar and NH 48 in Delhi NCR contributing to over one-third of the demand during the first half of 2026.
