India warehousing leasing up 12% in first half
Demand for industrial and warehousing space rose across the top eight cities in H1 2026, with 3PL and e-commerce leading and supply running ahead.
- Leasing across the top eight cities hit nearly 22 million sq ft in H1 2026, up 12 percent year-on-year.
- Third-party logistics took 30 percent of demand, e-commerce 16 percent; Pune and Kolkata grew 30 percent plus.
- Supply of 25 million sq ft outpaced leasing, a setup that steadies rents in favour of occupiers.
Industrial and warehousing leasing across India’s top eight cities reached nearly 22 million square feet in the first half of 2026, up 12 percent year-on-year. The figures come from a Colliers report published on 16 July. This is the demand side of the country’s commerce infrastructure build-out.
Who is taking the space
Third-party logistics firms drove the largest share of demand at 30 percent. Engineering followed at 21 percent. E-commerce took 16 percent. Delhi NCR and Chennai together accounted for more than 45 percent of leasing. Mumbai, Pune and Bengaluru each recorded over 2 million square feet of Grade A uptake. The demand base is widening beyond the usual metros. Vijay Ganesh, managing director of industrial and logistics services at Colliers India, said cities such as Pune, Ahmedabad and Kolkata grew 30 percent and above, signalling a more diversified map.
Supply is running ahead of demand
New completions reached about 25 million square feet in the half, ahead of the 22 million leased. Second quarter leasing was around 11 million square feet, a 1 percent dip from the first quarter, which Colliers linked to supply chain disruption from the conflict in West Asia. Grade A warehousing supply is expected to reach 45 to 50 million square feet by the end of 2026. More supply than demand tends to steady rents, which favours occupiers over landlords in the near term.
What an operator does with this
If you run distribution, this is a window to negotiate. Rents should stay rational while new Grade A stock lands. Lock longer leases in tier 2 corridors such as Pune, Ahmedabad and Kolkata, where growth is fastest and pricing is still reasonable. Position stock closer to demand before the festive season loads the network. A tighter warehousing footprint near consumption also frees the working capital tied up in transit and buffer inventory. The cost of space is one of the few line items an operator can still shape in its favour right now.
Zane’s analysis draws on original reporting by Colliers (via Prokerala). Read the original report.