Mumbai has emerged as India’s leading industrial and warehousing market, recording a 44% year-on-year increase in leasing activity to 10.7 million sq ft during the first half of 2026, according to Knight Frank India. The figure represents the city’s highest-ever half-yearly leasing volume.
Mumbai accounted for nearly 29% of the 36.8 million sq ft of industrial and warehousing space leased across India’s eight major markets during H1 2026. Its share increased substantially from around 23% in the corresponding period last year, underlining the city’s growing importance as a national logistics and distribution hub.
The broader Indian industrial and warehousing market also recorded strong growth, with leasing rising 15% year on year from 32.1 million sq ft to 36.8 million sq ft. The increase came despite geopolitical uncertainty, elevated freight costs, currency volatility and continuing supply-chain pressures.
Manufacturing and third-party logistics (3PL) companies were the primary drivers of demand. Manufacturing accounted for 46% of total leasing, or around 17 million sq ft, while 3PL operators contributed 30%, equivalent to approximately 11.1 million sq ft. Manufacturing-led demand increased 17% year on year, while leasing by 3PL firms grew 27%.
Mumbai’s strong performance has been supported by its large consumer market, established industrial base, proximity to major ports and extensive road and rail connectivity. The continued development of logistics infrastructure, including the Western Dedicated Freight Corridor, has further strengthened the region’s attractiveness for large-scale distribution and supply-chain operations.
The city’s warehousing market is increasingly being shaped by companies seeking strategically located facilities that can serve both manufacturing supply chains and consumer markets. The growth of 3PL outsourcing is also encouraging logistics providers to expand their warehouse networks and establish larger distribution centres.
Other major markets also recorded significant growth during the period. Bengaluru registered 4 million sq ft of leasing, up 36%, while Ahmedabad recorded 4.1 million sq ft, an increase of 15%. NCR saw leasing rise 17% to 5.9 million sq ft. Kolkata recorded the fastest percentage growth, with leasing increasing 69% to 2.4 million sq ft.
Knight Frank said India’s industrial and warehousing sector continues to demonstrate resilience, supported by manufacturing expansion, strong domestic demand and improvements in logistics infrastructure. However, limited land availability and regulatory bottlenecks could constrain the creation of new warehouse supply in the future.
Mumbai’s record performance therefore highlights the continued expansion of India’s logistics real estate sector. With manufacturers increasing their domestic footprint and businesses increasingly outsourcing logistics operations, demand for modern warehousing facilities is expected to remain strong through the second half of 2026.