India warehousing leasing rises 15% in H1 as Knight Frank sees strong H2
Industrial and warehousing leasing reached 36.8 million sq ft in H1 2026, led by manufacturing and 3PL demand. Knight Frank expects momentum to continue in H2 as domestic consumption, outsourcing and logistics infrastructure support demand for Grade A, automation-ready facilities.
What happened
Knight Frank India · Knight Frank expects India’s warehousing market to sustain growth in H2 2026, driven by manufacturing, domestic consumption, 3PL
Key facts
- Industrial and warehousing leasing rose 15% year-on-year to 36.8 million sq ft in H1 2026
- Manufacturing accounted for 46% of leasing, or 17 million sq ft, up 17% year-on-year
- 3PL operators accounted for 30% of leasing, or 11.1 million sq ft, up 27% year-on-year
- Mumbai leasing reached 10.7 million sq ft, up 44% year-on-year
- NCR leasing was 5.9 million sq ft, up 17%
- Bengaluru leasing was 4 million sq ft, up 36%
- Ahmedabad leasing grew 15%
- Kolkata leasing grew 69%
- Total stock reached 584.9 million sq ft, up 14% year-on-year
- Vacancy fell to 11.4% from 12.1%
- Grade A facilities represented 47% of total stock
Why this matters
Strategic buyers should prioritize partnerships or acquisitions in Grade A warehousing, 3PL and logistics-infrastructure platforms positioned to benefit from sustained outsourcing and domestic-consumption demand.