India’s warehousing growth in Q1 2026 is being led decisively by Mumbai and Pune, with both cities together accounting for more than four-fifths of total leasing activity.
Data from Vestian shows that total absorption stood at 11.4 million sq ft during the quarter. While this marks a modest recovery on a sequential basis, the real story lies in how demand is concentrated across a few key cities.
Mumbai remains the frontrunner, contributing nearly 42 percent of total absorption. The city’s dominance is driven largely by the Bhiwandi micro-market, which alone accounts for a significant share of both city-level and national leasing activity.
Pune has emerged as the biggest gainer, with its share jumping to 39 percent from 16 percent in the previous quarter. This sharp rise is attributed to the closure of several large deals, making it the city’s strongest quarter on record.
Together, Mumbai and Pune contributed 81 percent of India’s total warehousing absorption, underlining the continued dominance of western India as the country’s primary logistics hub.
Chennai stands out on pricing, recording the highest rentals among major cities after a sharp increase during the quarter. This indicates strong demand for premium warehousing space despite stable overall rental trends across the top markets.
NCR and Kolkata, on the other hand, saw a slowdown in activity. NCR’s share dropped significantly compared to the previous quarter, while Kolkata recorded minimal leasing following earlier large transactions.
The city-wise performance reflects a broader trend in India’s logistics sector, where demand is consolidating around established hubs with strong infrastructure, connectivity, and occupier ecosystems.
With policy support from initiatives such as PM Gati Shakti and the National Logistics Policy, these leading cities are expected to remain at the centre of India’s warehousing expansion.
