India’s industrial and warehousing real estate sector continued its strong growth trajectory in the first quarter of 2026 (January–March), with total stock across eight major cities reaching 514 million sq. ft, according to JLL. The sector is projected to expand to nearly 850 million sq. ft by 2030, reflecting a compound annual growth rate (CAGR) of 11.4% and reinforcing India’s emergence as a global manufacturing and logistics hub.
The market is witnessing a steady shift towards higher-quality assets, with Grade A stock increasing nearly 20% year-on-year to 293 million sq. ft. Grade A assets now account for 57% of the country’s total industrial and warehousing inventory.
“India’s industrial and warehousing market continues to evolve with increasing concentration of Grade A space, which grew nearly 20% year-on-year to reach 293 million sq. ft, now representing 57% of the total market stock. Occupiers are also adopting flexible real estate strategies to navigate rising land acquisition and construction costs. Models such as lease-to-buy, built-to-suit leasing and development management are gaining traction, helping companies balance real estate requirements with capital efficiency,” said Yogesh Shevade, Managing Director and Head of Industrial & Logistics, India, JLL.
During Q1 2026, gross absorption stood at 18.3 million sq. ft, with manufacturing contributing 28% of the total demand.
Manufacturing occupiers leased 5.1 million sq. ft during the quarter, building on the sector’s strong momentum in 2025, when it accounted for 19.3 million sq. ft of leasing activity, or 26% of the annual gross absorption of 73.7 million sq. ft. Engineering companies led manufacturing demand with a 47% share, followed by the Auto and Ancillaries segment at 32%.
Warehousing remained the dominant demand driver, accounting for 72% of total absorption, or 13.2 million sq. ft. Demand was primarily led by third-party logistics (3PL) providers, followed by consumption-driven sectors such as e-commerce, FMCG, FMCD and retail.
Western India continued to lead the market, with Mumbai and Pune together accounting for 43% of total absorption during the quarter. Mumbai emerged as the largest market with a 22% share, closely followed by Pune at 21%. Delhi-NCR captured 20% of demand, while Bengaluru and Chennai contributed 13% and 12%, respectively. Collectively, these five markets represented 88% of India’s industrial and warehousing leasing activity, highlighting the concentration of demand along established logistics and manufacturing corridors.
Manufacturing demand displayed clear regional preferences, with Pune and Chennai attracting the highest share of production-oriented occupiers. Their strong industrial ecosystems, skilled workforce and mature infrastructure continue to make them preferred destinations for both domestic and export-focused manufacturing operations.
The robust performance of Mumbai and Pune also reflects sustained confidence in Maharashtra’s industrial corridor, supported by proximity to major ports, improving connectivity infrastructure and growing e-commerce fulfilment requirements.
Looking ahead, JLL expects the sector’s growth momentum to remain intact through the decade. The expansion from 514 million sq. ft in Q1 2026 to an estimated 850 million sq. ft by 2030 is expected to be driven by manufacturing investments under production-linked incentive (PLI) schemes, rapid growth in e-commerce infrastructure and India’s increasing role in global supply chain diversification.
With demand broadening across sectors and occupiers continuing to prioritise quality assets, India’s industrial and warehousing real estate market appears well positioned for sustained long-term growth.
