India’s industrial and warehousing sector recorded a strong start to 2026, with demand across the top eight cities rising 22% year-on-year during the January–March quarter, driven by robust leasing activity and sustained momentum in logistics and e-commerce.
Total leasing reached around 11 million sq ft during the period, with Delhi-NCR and Chennai emerging as the leading markets, accounting for 28% and 21% of demand respectively, according to an IANS report citing Colliers data.
Third-party logistics (3PL) players remained the primary demand drivers, contributing nearly one-third of total absorption, while e-commerce and automobile sectors together accounted for about 32% of leasing activity.
Demand also remained strong in cities such as Hyderabad and Bengaluru, where Grade A warehousing uptake grew significantly compared to the same period last year. The growth was supported by expanding supply chain requirements and ongoing logistics modernisation.
However, industry experts caution that developers may take a measured approach to adding new supply in the near term, given geopolitical uncertainties and ongoing disruptions in global supply chains.
Despite these concerns, the sector’s long-term outlook remains positive, backed by policy support, manufacturing growth and increasing demand for high-quality warehousing infrastructure.
