India’s logistics and industrial real estate sector recorded its strongest-ever first-half performance in 2026, with leasing activity reaching a record 36.2 million square feet (MSF), driven by robust demand from third-party logistics (3PL) providers, e-commerce companies, manufacturing firms, and retail businesses.
The record leasing volume reflects the continued expansion of India’s warehousing and supply chain infrastructure as companies invest in larger, technology-enabled facilities to support growing domestic consumption and export-oriented manufacturing. Demand remained particularly strong for Grade A warehouses located near major ports, airports, industrial corridors, and consumption centres.
Third-party logistics providers emerged as one of the largest occupiers of industrial and warehouse space, supported by increasing freight volumes and the need for efficient distribution networks. E-commerce companies also continued expanding fulfilment centres to meet rising consumer demand and enable faster deliveries across the country.
Manufacturing activity under government initiatives such as ‘Make in India’ and the Production Linked Incentive (PLI) schemes further boosted demand for industrial facilities. Sectors including automobiles, electronics, pharmaceuticals, engineering goods, and fast-moving consumer goods (FMCG) accounted for a significant share of leasing activity.
Industry experts attributed the strong performance to improving infrastructure, expanding multimodal logistics connectivity, and sustained investment in industrial parks and warehousing hubs. Cities such as Mumbai, Delhi-NCR, Bengaluru, Chennai, Pune, Hyderabad, and Kolkata remained key markets for logistics and industrial real estate development.
The record leasing activity is expected to encourage further investments in modern warehouse infrastructure, automation, and sustainable industrial facilities. Analysts believe the sector’s continued growth will strengthen India’s supply chain capabilities, reduce logistics costs, and support the country’s ambition to become a leading global manufacturing and trade hub.
