India's Industrial and Warehousing Sector Sees 22% Growth in Q1 2026
Synopsis
In a notable surge, India's industrial and warehousing sectors experienced a 22% growth in the first quarter of 2026, with significant contributions from key cities like Delhi-NCR and Chennai. This trend highlights the resilience and evolving dynamics of the logistics landscape amidst ongoing global challenges.
Key Takeaways
22% annual growth in industrial and warehousing demand.
11 million square feet leased in Q1 2026.
Delhi-NCR and Chennai lead in demand.
3PL players drive significant leasing activity.
Ongoing geopolitical tensions may affect future growth.
New Delhi, April 15 (NationPress) Demand for industrial and warehousing spaces across India's top eight cities has shown remarkable resilience in the January-March quarter, marking a substantial 22% annual increase with 11 million square feet of leasing activity, as reported on Wednesday.
During this quarter, Delhi-NCR emerged as the leading region, contributing 28% to the demand, closely followed by Chennai at 21%, according to findings from Colliers.
Leasing activity in Hyderabad and Bengaluru also remained vigorous, with the uptake of Grade A industrial and warehousing spaces in Q1 2026 increasing by 2-3 times compared to the same period last year.
Third-party logistics (3PL) providers significantly influenced overall demand during this quarter, accounting for approximately one-third of the total space acquired, as highlighted in the report.
In fact, demand from 3PL in Q1 2026 was 1.8 times higher than the leasing activity in Q1 2025.
This upward trend is supported by the growing logistics needs and advancements in supply chain management. Furthermore, the e-commerce and automobile sectors showcased robust leasing figures in Q1 2026.
“While the long-term outlook for India's industrial and warehousing market remains promising, developers are likely to take a cautious approach regarding new supply in the near future, given the ongoing geopolitical tensions and supply chain challenges,” stated Vijay Ganesh, Managing Director, Industrial and Logistics Services at Colliers India.
However, sustained policy support to bolster domestic manufacturing and logistics capabilities will be crucial for mitigating potential risks, he noted.
Demand from e-commerce and automobile sectors remained robust, collectively representing about 32% of the leasing activity during the quarter.
Both sectors recorded over 1.5 million sq ft in leasing during this period. Additionally, as companies continue to diversify, FMCG and electronics businesses observed leasing growth of over 2 times year-on-year.
“The ongoing crisis in West Asia is a significant factor to watch, with the potential to impact the Indian economy and the industrial and warehousing sectors over the coming quarters,” remarked Vimal Nadar, National Director & Head of Research at Colliers India.
Point of View
It's evident that the industrial and warehousing demand in India reflects a robust economic trajectory despite external challenges. The significant growth in leasing activities signals a resilient market that is vital for the country's logistics and manufacturing sectors.
NationPress
1 May 2026
Frequently Asked Questions
What was the growth percentage in industrial and warehousing demand in India for Q1 2026?
The growth percentage in industrial and warehousing demand in India for Q1 2026 was 22%.
Which cities contributed most to the industrial demand?
Delhi-NCR contributed 28% and Chennai contributed 21% to the industrial demand.
What role did third-party logistics play in this growth?
Third-party logistics (3PL) providers accounted for approximately one-third of the total space uptake during the quarter.
How did the e-commerce sector perform in terms of leasing?
The e-commerce sector, along with the automobile sector, accounted for about 32% of the total leasing activity in the quarter.
What are the potential challenges facing the industrial market?
The ongoing geopolitical crisis and supply chain disruptions are potential challenges that could impact the industrial market.
