India’s industrial and warehousing real estate sector maintained strong momentum during the first half of 2026, with leasing activity reaching nearly 22 million sq ft, registering a 12 per cent year-on-year growth, according to a report released by Colliers on Thursday.
The report highlighted that new supply outpaced demand, with approximately 25 million sq ft of Grade A industrial and warehousing space completed during the January–June 2026 period, reflecting developers’ confidence in the sector’s long-term growth prospects.
Delhi-NCR and Chennai emerged as the leading markets, jointly accounting for more than 45 per cent of total leasing activity during H1 2026. Meanwhile, Mumbai, Pune and Bengaluru each recorded over 2 million sq ft of Grade A leasing, underscoring sustained occupier demand across India’s major logistics hubs.
Sector-wise, third-party logistics (3PL) companies remained the largest occupiers, contributing around 30 per cent of total leasing demand. The engineering sector followed with 21 per cent, while e-commerce accounted for 16 per cent, reflecting continued expansion in manufacturing and supply chain operations.
Despite the strong half-year performance, leasing activity moderated slightly during the second quarter due to supply chain disruptions arising from the ongoing geopolitical tensions in West Asia.
Grade A leasing stood at around 11 million sq ft in Q2 2026, marking a marginal 1 per cent quarter-on-quarter decline. However, Colliers expects demand to strengthen in the coming quarters, supported by India’s increasing focus on domestic manufacturing and infrastructure development, provided global geopolitical uncertainties remain contained.
Commenting on the market outlook, Vijay Ganesh, Managing Director, Industrial and Logistics Services, Colliers India, said the annual growth was encouraging despite the challenging global environment.
“The annual growth is particularly significant, given the challenging second quarter amid evolving global supply chains. Cities such as Pune, Ahmedabad and Kolkata witnessed growth of 30 per cent and upwards, signalling the emergence of a more diversified demand landscape,” he said.
He added that infrastructure-led development, expanding domestic manufacturing and easing global headwinds are expected to further strengthen the industrial and warehousing sector through the remainder of 2026.
The report also noted that leasing activity remained concentrated in key logistics corridors. Bhiwandi in the Mumbai Metropolitan Region and Farukh Nagar and NH-48 in Delhi-NCR together accounted for more than one-third of total leasing demand during the first six months of the year, reaffirming their importance as India’s leading logistics and warehousing destinations.