India logistics and industrial leasing reaches 36.2 million sq ft in H1 2026

Gross leasing across India’s top eight cities rose 18% year on year in H1 2026, led by 24.3 million sq ft of warehouse demand. Delhi NCR, Chennai and Pune were the biggest markets, while 3PL, manufacturing and automotive tenants drove absorption.

— Source publishedMon, 10 Aug, 2026, 06:33 IST·First seen Mon, 10 Aug, 2026, 06:36 IST·Source BL · Consumer & Economy

What happened

Cushman & Wakefield · India’s logistics and industrial leasing hit a record 36.2 million sq ft in H1 2026, led by warehousing, manufacturing, 3PL and automotive

Key facts

  • 36.2 million sq ft gross leasing volume across top eight cities in H1 2026
  • 18% year-on-year leasing growth
  • 2% growth versus H2 2025
  • 24.3 million sq ft warehouse leasing
  • 67% of total absorption from warehouses
  • 11% year-on-year warehouse leasing growth
  • Nearly 12 million sq ft industrial leasing
  • 36% year-on-year industrial leasing growth
  • 27% industrial leasing growth versus H2 2025
  • More than 60% of leasing from 3PL and engineering/manufacturing
  • 4.8 million sq ft automobile-sector leasing
  • 13% of overall demand from automobiles
  • Nearly 63% of automobile leasing in industrial facilities

Why this matters

With warehouses representing 67% of absorption, retailers and logistics players should evaluate partnerships, acquisitions or long-term development deals that strengthen distribution access in India’s highest-demand corridors.

What to watch

  • Grade A warehouse rental growth and vacancy rates in Delhi NCR, Chennai and Pune.
  • New supply completions versus pre-leasing levels across the top eight cities.
  • 3PL lease share, fulfillment pricing and capacity utilization during festive and promotional peaks.
  • E-commerce, quick-commerce and modern-retail order growth by tier-2 and tier-3 catchment.
  • Road, rail, port and multimodal infrastructure commissioning near major industrial corridors.
  • Manufacturing output, automotive production and domestic sourcing announcements.
  • Prioritize micro-market mapping around Delhi NCR, Chennai and Pune to identify where new distribution capacity can improve one- and two-day delivery coverage.
  • Lock in longer-term leases or flexible capacity agreements for Grade A warehouses before rent growth accelerates in high-absorption corridors.
  • Reassess inventory placement by separating fast-moving regional assortment from national long-tail inventory.
  • Benchmark 3PL contracts for rent-escalation, labor, transport and peak-capacity clauses; diversify providers where concentration risk is high.
  • Evaluate domestic supplier and private-label opportunities near expanding manufacturing clusters.

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