- Warehouse leasing accounted for 67% of total activity, while industrial leasing grew 36% YoY to nearly 12 MSF
- 3PL and E&M occupiers contributed over 60% of total leasing activity, while the automobile sector emerged as a key growth driver
- Delhi NCR led leasing activity with a 24% share, followed by Chennai (17%) and Pune (16%)
India's logistics and industrial real estate sector maintained its growth momentum in the first half of 2026, supported by robust occupier demand across logistics, manufacturing and automotive sectors. According to Cushman & Wakefield's H1 2026 Logistics & Industrial MarketBeat report, gross leasing volume across the top eight cities reached 36.2 million square feet (MSF), the highest-ever leasing volume recorded in the first half of a calendar year.
Leasing activity grew 18% year-on-year (YoY) and was 2% higher than H2 2025, underscoring the sector’s resilience amid an evolving global business environment.
Warehouse leasing continued to dominate the market, accounting for 24.3 MSF of leasing volume and 67% of total absorption during H1 2026. The segment recorded 11% YoY growth, although activity moderated marginally by 6% compared to H2 2025. Meanwhile, industrial leasing reached nearly 12 MSF during H1 2026, up 36% YoY and 27% higher than H2 2025, highlighting the increasing role of manufacturing-led expansion in shaping India’s logistics and industrial real estate market.
Sectoral Trends
3PL occupiers continued to drive leasing momentum in H1 2026, accounting for 12.2 MSF of absorption and a 34% share of overall demand, while registering a robust 64% YoY growth. Engineering & Manufacturing (E&M) firms followed closely, leasing 10.2 MSF of space, contributing 28% of total absorption and recording a 6% YoY increase. Together, 3PL and E&M occupiers accounted for more than 60% of overall leasing activity, underscoring the continued strength of India's manufacturing and supply chain ecosystem.
The automobile sector emerged as one of the key growth drivers during H1 2026, accounting for 4.8 MSF of leasing volume and 13% of overall demand. Leasing by automobile occupiers nearly doubled compared to H1 2025. The growth was primarily led by industrial facilities, which accounted for nearly 63% of the sector's leasing activity, supported by accelerated investments across the electric vehicle (EV) value chain. The strong leasing momentum also mirrors the healthy performance of India's automotive sector, with robust passenger vehicle sales in H1 2026 underscoring continued manufacturing and supply chain expansion.
Overall sectoral share:
|
Segment |
Share in H1 2026 |
|
3PL |
34% |
|
Automobile |
13% |
|
Consumer Durables |
4% |
|
E-commerce |
8% |
|
Engineering & Manufacturing |
28% |
|
FMCG |
6% |
|
Others |
4% |
|
Pharmaceuticals |
1% |
|
Retail |
3% |
|
Grand Total |
100% |
Market-wise Leasing Activity
At the city level, Delhi NCR emerged as the largest logistics and industrial market during H1 2026, recording 8.7 MSF of leasing activity and capturing 24% of overall demand. The market registered a robust 69% YoY growth, the highest among the major markets. Chennai and Pune followed with 6.1 MSF and 5.9 MSF of leasing activity, accounting for 17% and 16% of total demand, respectively. Both cities recorded strong growth during the period, with Chennai increasing by 39% YoY and Pune 32% YoY, supported by continued manufacturing and industrial expansion.
Mumbai and Bengaluru recorded 4.7 MSF and 4.4 MSF of leasing activity, accounting for 13% and 12% of total demand, respectively. Ahmedabad registered 2.2 MSF, while Kolkata and Hyderabad each witnessed leasing of 2.1 MSF during the period.
|
City |
H1 2026 Gross leasing (in MSF) |
H1 2025 Gross leasing (in MSF) |
YOY Growth |
|
Ahmedabad |
2.2 |
1.7 |
31% |
|
Bengaluru |
4.4 |
3.3 |
33% |
|
Chennai |
6.1 |
4.4 |
39% |
|
Delhi NCR |
8.7 |
5.1 |
69% |
|
Hyderabad |
2.1 |
2.7 |
-21% |
|
Kolkata |
2.1 |
2.0 |
6% |
|
Mumbai |
4.7 |
7.0 |
-33% |
|
Pune |
5.9 |
4.5 |
32% |
|
Total Gross leasing |
36.2 |
30.7 |
18% |
Abhishek Bhutani, Managing Director, Logistics & Industrial Services India, Head- Gujarat, Cushman & Wakefield, said, “India's logistics and industrial sector has built on the strong momentum of 2025 to deliver a record first half in 2026, reinforcing the structural strength of occupier demand. Leasing activity continued to be driven by 3PL players, manufacturing expansion and sustained investments across supply chains and industrial infrastructure. The strong leasing activity witnessed across key markets, particularly in Delhi NCR, was also supported by healthy supply additions during the period, enabling occupiers to execute expansion plans. Despite an external environment marked by geopolitical tensions and trade-related uncertainties, occupier demand has remained resilient. While businesses have adopted a more measured approach to decision-making in recent months, expansion plans remain firmly on track, reflecting long-term confidence in India's manufacturing and consumption story. Looking ahead, we expect leasing momentum to be supported by seasonal demand from the e-commerce, retail and automotive sectors in the second half of the year. At the same time, global developments will continue to influence the pace of decision-making, although India's long-term fundamentals remain well positioned to support sustained growth in the sector. ”
City specific insights-
Ahmedabad: In H1 2026, Ahmedabad witnessed robust warehouse leasing of 1.8 MSF, up 3.5x from H2 2025 and an increase of 54% YoY. The city recorded industrial leasing volume of 0.4 MSF in H1 2026, a decline of 55% compared to H2 2025 and down by 18% YoY.
Bengaluru: Bengaluru recorded 3.1 MSF of warehousing lease volumes in H1 2026, a 78% YoY jump and a growth of 64% over H2 2025. Bengaluru recorded industrial leasing of nearly 1.4 MSF in H1, a 56% growth as compared to H2 2025 though a 15% decline YoY.
Chennai: Chennai's warehousing market witnessed a robust 2.3 MSF of leasing in H1-26, recording a 10% increase YoY and 1% growth over H2-25. Industrial leasing surged to a record 3.8 MSF, the highest ever recorded for any half-year, accounting for nearly 63% of the overall leasing activity. In H1-26 industrial leasing volume grew by 79% as compared to H2-25 and 64% on YoY basis.
Delhi NCR: In H1-2026, Delhi NCR saw warehouse leasing of 8.0 MSF, which was 66% higher YoY and 12% higher than H2-25. Industrial leasing in Delhi NCR during H1-26 reached 0.7 MSF, 107% higher YoY and 59% below H2-25.
Hyderabad: The city recorded 1.49 MSF of warehousing leasing in H1 2026, down 39.9% YoY and 12.6% compared with H2 2025. Industrial leasing reached 0.62 MSF in H1 2026, over 3x H1 2025 levels and 2.4x H2 2025 volumes.
Kolkata: The city recorded warehouse leasing volumes of around 1.7 MSF in H1 2026, a 9% decline from H2 2025 and a 17% fall as compared to the first half of last year. Industrial lease volume of around 0.5 MSF was recorded in H1, compared to just 0.09 MSF of transactions completed in full calendar year 2025.
Mumbai: In H1 2026, Mumbai's warehousing market maintained healthy leasing momentum, recording 4.7 MSF of gross leasing activity. While leasing moderated by ~54% compared to the strong performance in H2 2025 and by 33% over H1 2025. The city's industrial market witnessed muted leasing activity in H1 2026, primarily constrained by limited availability of supply.
Pune: The city recorded 1.7 MSF of warehouse leasing in H1 2026, up 27% YoY and 6% over H2 2025. Pune recorded 4.2 MSF of industrial leasing in H1 2026, reflecting a 33% YoY growth and a 55% increase over H2 2025.
