India logistics and industrial leasing hits record 36.2 mn sq ft in H1 2026
Synopsis
India's logistics and industrial real estate sector just set an all-time first-half record at 36.2 million sq ft — and the real story is industrial space outrunning warehouses, with auto and EV players nearly doubling their footprint. Delhi NCR alone absorbed 8.7 MSF, signalling that India's manufacturing ambitions are now visibly reshaping its physical infrastructure map.
Key Takeaways
India's logistics and industrial leasing reached a record 36.2 MSF in H1 2026 , up 18 per cent year-on-year, per Cushman & Wakefield .
Warehouse leasing accounted for 24.3 MSF ( 67 per cent of total absorption), while industrial leasing surged 36 per cent YoY to nearly 12 MSF .
3PL occupiers leased 12.2 MSF — a 64 per cent annual jump; E&M firms added 10.2 MSF ; together they drove over 60 per cent of demand.
The automobile sector leased 4.8 MSF , nearly doubling its H1 2025 volume, with EV investments leading industrial facility uptake.
Delhi NCR was the top market with 8.7 MSF absorbed, capturing 24 per cent of overall demand.
India's logistics and industrial real estate sector posted its highest-ever first-half leasing volume in H1 2026, with gross absorption across the top eight cities reaching 36.2 million square feet (MSF) — up 18 per cent year-on-year and 2 per cent above H2 2025, according to a report released on Tuesday, 4 August 2026 by Cushman & Wakefield. Robust demand from logistics, manufacturing, and automotive occupiers underpinned the record run.
Warehouse Leasing Dominates, Industrial Space Surges
Warehouse leasing remained the backbone of the market, accounting for 24.3 MSF — or 67 per cent of total absorption — during H1 2026, registering 11 per cent year-on-year growth. Activity did moderate marginally by 6 per cent compared to H2 2025, pointing to a slight cooling in pure warehousing demand even as overall volumes stayed elevated.
Industrial leasing, however, accelerated sharply, reaching nearly 12 MSF in H1 2026 — up 36 per cent year-on-year and 27 per cent higher than H2 2025. The outperformance signals that manufacturing-led expansion is increasingly reshaping India's logistics and industrial real estate landscape.
3PL and Engineering Firms Drive Over 60 Per Cent of Demand
Third-party logistics (3PL) occupiers led absorption, leasing 12.2 MSF and claiming a 34 per cent share of overall demand — a 64 per cent annual jump that reflects the rapid scaling of outsourced supply-chain operations across India.
Engineering & Manufacturing (E&M) firms followed closely, leasing 10.2 MSF and contributing 28 per cent of total absorption, up 6 per cent year-on-year. Together, 3PL and E&M occupiers accounted for over 60 per cent of all leasing activity, underscoring the structural strength of India's manufacturing and supply-chain ecosystem.
Abhishek Bhutani, Managing Director, Logistics & Industrial Services, Cushman & Wakefield, said: 'Leasing activity continued to be driven by 3PL players, manufacturing expansion and sustained investments across supply chains and industrial infrastructure.'
Automobile Sector Nearly Doubles Its Footprint
The automobile sector emerged as a standout growth driver, accounting for 4.8 MSF of leasing — or 13 per cent of overall demand — with volumes nearly doubling compared to H1 2025. Industrial facilities captured nearly 63 per cent of the sector's leasing activity, supported by accelerated investments across the electric vehicle (EV) value chain.
This comes amid a broader push by both domestic and global automakers to deepen their manufacturing and warehousing footprint in India, particularly as EV supply-chain localisation gathers pace.
Delhi NCR Leads City-Level Rankings
Delhi NCR emerged as the largest logistics and industrial market in H1 2026, recording 8.7 MSF of leasing activity and capturing 24 per cent of overall demand. The capital region's dominance reflects its strategic position as the gateway to North India's consumption and manufacturing corridors.
With industrial leasing outpacing warehouse growth and the automobile and EV sectors accelerating commitments, the second half of 2026 will test whether this momentum can be sustained against global supply-chain uncertainties and domestic land-availability constraints.
Point of View
But the more telling signal is that industrial leasing grew at three times the pace of warehousing in H1 2026. That divergence suggests India's real estate demand is shifting from distribution-first to production-first — a structural change, not a cyclical blip. The near-doubling of automobile sector leasing, driven largely by EV supply-chain build-out, is particularly significant: it indicates that EV localisation is moving from policy aspiration to physical footprint. The risk is on the supply side — land acquisition bottlenecks and infrastructure gaps in non-NCR markets could cap how far this momentum travels into H2 2026 and beyond.
NationPress
4 Aug 2026
Frequently Asked Questions
What is the record set by India's logistics and industrial sector in H1 2026?
India's logistics and industrial real estate sector recorded gross leasing of 36.2 million square feet across the top eight cities in H1 2026 — the highest first-half volume ever, up 18 per cent year-on-year, according to a Cushman & Wakefield report released on 4 August 2026.
Which occupier segments drove the most leasing activity in H1 2026?
Third-party logistics (3PL) firms led with 12.2 MSF absorbed — a 64 per cent annual jump — followed by Engineering & Manufacturing (E&M) companies at 10.2 MSF. Together they accounted for over 60 per cent of total leasing activity.
Why did automobile sector leasing nearly double in H1 2026?
Automobile sector leasing reached 4.8 MSF in H1 2026, nearly doubling compared to H1 2025, driven primarily by industrial facility demand tied to accelerated investments across the electric vehicle (EV) value chain.
Which city was the top logistics and industrial market in H1 2026?
Delhi NCR was the largest market, recording 8.7 MSF of leasing activity and accounting for 24 per cent of overall demand during H1 2026.
How did industrial leasing compare to warehouse leasing in H1 2026?
Warehouse leasing dominated at 24.3 MSF (67 per cent of total absorption) but grew 11 per cent year-on-year. Industrial leasing, at nearly 12 MSF, grew far faster at 36 per cent YoY and 27 per cent above H2 2025, signalling a manufacturing-led shift in demand.
