India's top 7 cities log 8% QoQ warehousing growth in Q1 2026
Synopsis
India's warehousing sector has now clocked four straight quarters of sequential growth, with Mumbai and Pune alone accounting for 81% of Q1 2026 leasing activity. Vestian's data suggests the 2025 moderation was a strategic pause, not a structural retreat — and a 45 million sq ft annual target for 2026 is now on the table.
Key Takeaways
India's top 7 cities absorbed 11.4 million sq ft of warehousing space in Q1 2026 , up 8% quarter-on-quarter .
This marks the fourth consecutive quarter of sequential growth, per Vestian .
Mumbai led with 4.76 million sq ft ( 42% of pan-India absorption); Pune followed at 4.46 million sq ft , up 162% QoQ .
Overall absorption was down 14% year-on-year , though leasing activity remained robust.
Annual warehousing absorption is projected to exceed 45 million sq ft by end of 2026 .
NCR absorption moderated 57% year-on-year to 0.73 million sq ft .
India's top seven cities recorded warehousing and logistics absorption of 11.4 million square feet in Q1 2026, marking an 8% quarter-on-quarter increase and the fourth consecutive quarter of sequential growth, according to a report released on Wednesday, 29 April 2026 by workplace solutions firm Vestian. The data signals that the sector has entered 2026 on a stronger footing, underpinned by improved occupier sentiment and resilient domestic demand.
Key Drivers Behind the Growth
The quarterly uptick was led by third-party logistics, engineering and manufacturing, and consumer goods occupiers. According to the Vestian report, rising manufacturing activity, ongoing infrastructure upgrades, and robust domestic consumption collectively supported leasing momentum across major logistics corridors.
Shrinivas Rao, FRICS, CEO, Vestian, said:
Point of View
But the 14% year-on-year decline deserves equal attention — it signals that Q1 2025 was a stronger baseline, not that 2026 is firing on all cylinders. The Mumbai-Pune duopoly accounting for 81% of absorption also raises a structural question: are India's logistics corridors genuinely diversifying, or is concentration risk deepening? NCR's 57% YoY drop is particularly striking for a region that should be a natural warehousing anchor. The 45 million sq ft annual forecast is achievable, but only if Tier-II hubs absorb the slack that established markets cannot indefinitely carry.
NationPress
1 May 2026
Frequently Asked Questions
How much warehousing space was absorbed in India's top cities in Q1 2026?
India's top seven cities absorbed 11.4 million square feet of warehousing and logistics space in Q1 2026, an 8% increase quarter-on-quarter, according to a Vestian report released on 29 April 2026.
Which cities led warehousing absorption in Q1 2026?
Mumbai led with 4.76 million sq ft, accounting for 42% of pan-India absorption. Pune followed closely at 4.46 million sq ft, recording a 162% quarter-on-quarter surge and a 42% year-on-year rise. Together, the two cities contributed 81% of total leasing activity.
Why did overall warehousing absorption fall 14% year-on-year despite quarterly growth?
According to Vestian, the year-on-year moderation reflects a phase of strategic recalibration witnessed in 2025 rather than a structural slowdown in demand. Quarterly momentum has since recovered, with four consecutive quarters of sequential growth recorded.
What is the warehousing absorption forecast for 2026?
The Vestian report projects annual warehousing absorption exceeding 45 million sq ft by the end of 2026, driven by supply chain resilience investments, demand for Grade-A facilities, and expansion into Tier-I and Tier-II logistics hubs.
How did smaller markets like Hyderabad and NCR perform in Q1 2026?
Hyderabad recorded 0.69 million sq ft of absorption, up 50% year-on-year. The National Capital Region absorbed 0.73 million sq ft, but this represented a 57% year-on-year decline. Chennai, Bengaluru, and Kolkata recorded 0.59 million, 0.17 million, and 0.01 million sq ft respectively.
