India industrial warehousing leasing hits 22 mn sq ft in H1 2026, up 12%
Synopsis
India's industrial and warehousing sector absorbed nearly 22 million sq ft in the first half of 2026 — a 12% annual jump — even as a West Asia-driven supply chain disruption clipped Q2 momentum. The real story is the rise of Pune, Ahmedabad, and Kolkata, each posting 30%-plus growth, signalling that India's logistics boom is spreading well beyond its traditional gateway cities.
Key Takeaways
Industrial and warehousing leasing across India's top 8 cities reached nearly 22 million sq ft in H1 2026 , up 12% year-on-year .
New supply of 25 million sq ft outpaced demand during the same period, reflecting strong developer confidence.
Delhi-NCR and Chennai together held more than 45% of total leasing; Mumbai , Pune , and Bengaluru each crossed 2 million sq ft .
3PL firms led demand at 30% , followed by engineering ( 21% ) and e-commerce ( 16% ).
Q2 2026 leasing dipped 1% sequentially to 11 million sq ft due to West Asia conflict-related supply chain disruptions.
Pune , Ahmedabad , and Kolkata each recorded leasing growth of 30% or more , signalling demand diversification.
Industrial and warehousing leasing across India's top eight cities reached nearly 22 million sq ft in the first half of 2026, marking a 12 per cent year-on-year rise, according to a report released by Colliers on 16 July 2026. The performance underscores resilient occupier demand across major logistics hubs even as global headwinds weighed on the second quarter.
Supply Outpaces Demand
New supply significantly outstripped absorption during the period, with approximately 25 million sq ft of completions recorded in H1 2026. The surplus signals developer confidence in long-term demand, even as near-term take-up moderated. Grade A space continued to attract the bulk of occupier interest, particularly in established logistics corridors.
Key Markets and Demand Drivers
Delhi-NCR and Chennai together accounted for more than 45 per cent of total leasing in H1 2026. Mumbai, Pune, and Bengaluru each recorded over 2 million sq ft of Grade A uptake, reflecting broad-based demand across India's primary industrial belts.
Within these cities, demand was concentrated in select high-performing clusters. Bhiwandi in Mumbai and Farukh Nagar and NH 48 in Delhi-NCR together accounted for over one-third of all leasing in the first half of 2026.
By sector, third-party logistics (3PL) firms drove roughly 30 per cent of overall demand, followed by engineering at 21 per cent and e-commerce at 16 per cent.
Q2 Dip Linked to West Asia Conflict
The second quarter of 2026 saw a marginal pullback, with leasing easing to around 11 million sq ft — a 1 per cent sequential decline from Q1 2026. The Colliers report attributed the dip to supply chain disruptions stemming from the ongoing conflict in West Asia, which disrupted logistics planning for several occupiers.
Notably, this is the second consecutive quarter in which geopolitical factors have been cited as a drag on an otherwise strong domestic demand cycle — a pattern that underscores how exposed India's logistics sector remains to global trade volatility.
Emerging Cities Signal Diversification
Pune, Ahmedabad, and Kolkata each witnessed leasing growth of 30 per cent or more, according to the report, pointing to a broadening of demand beyond the traditional gateway cities. This diversification reflects both infrastructure investment and the push to develop manufacturing capacity outside established hubs.
Vijay Ganesh, Managing Director, Industrial and Logistics Services, Colliers India, said the annual growth was 'particularly significant, given the challenging second quarter amid evolving global supply chains.' He added that 'infrastructure-led development and expanding domestic manufacturing, coupled with moderating global headwinds, are expected to reinforce the growth trajectory of the industrial and warehousing sector through 2026.'
With renewed focus on domestic manufacturing capabilities, overall demand is expected to pick up in the coming quarters, provided global volatility remains contained, the report noted.
Point of View
And the Q2 dip is not just a seasonal blip but a symptom of India's logistics sector being caught in the crossfire of West Asia geopolitics. More interesting is the tier-2 surge — Ahmedabad, Kolkata, and Pune growing at 30%-plus suggests that the next phase of India's warehousing story will be written outside the NCR-Mumbai-Bengaluru triangle. Whether that reflects genuine demand diversification or developers chasing cheaper land will become clear by year-end. The 3PL dominance at 30% of demand also points to a structural shift: occupiers are outsourcing logistics rather than owning it, which has long-term implications for asset quality and lease tenure across the sector.
NationPress
16 Jul 2026
Frequently Asked Questions
How much did India's industrial and warehousing leasing grow in H1 2026?
Industrial and warehousing leasing across India's top eight cities reached nearly 22 million sq ft in H1 2026, a 12 per cent increase year-on-year, according to a Colliers report released on 16 July 2026.
Which cities led warehousing demand in the first half of 2026?
Delhi-NCR and Chennai together accounted for more than 45 per cent of leasing in H1 2026. Mumbai, Pune, and Bengaluru each recorded over 2 million sq ft of Grade A uptake, while Pune, Ahmedabad, and Kolkata each posted growth of 30 per cent or more.
Why did warehousing leasing slow in Q2 2026?
Leasing eased marginally to around 11 million sq ft in Q2 2026, a 1 per cent sequential decline, primarily due to supply chain disruptions linked to the ongoing conflict in West Asia, which affected logistics planning for several occupiers.
Which sectors drove warehousing demand in India in H1 2026?
Third-party logistics (3PL) firms were the largest demand driver at roughly 30 per cent of total leasing, followed by engineering at 21 per cent and e-commerce at 16 per cent, according to the Colliers report.
What is the outlook for India's warehousing sector in the second half of 2026?
Colliers expects demand to pick up in the coming quarters, supported by infrastructure-led development and expanding domestic manufacturing. However, the report cautions that the recovery is contingent on global volatility — particularly from West Asia — remaining contained.
