India’s Industrial & Warehousing Leasing Grows 13% to 18.3 Mn Sq. Ft. in Q1 2026: JLL

India's industrial and warehousing real estate market recorded 13% year-on-year growth in leasing, reaching 18.3 million sq. ft. in Q1 2026, according to JLL. Total market stock stood at 514 million sq. ft., with Grade A space accounting for 293 million sq. ft. (57%) of the inventory. Warehousing remained the key demand driver, contributing 72% of total absorption, while manufacturing accounted for 28%. Mumbai and Pune together captured 43% of leasing activity, reinforcing their leadership as major industrial hubs. JLL expects the market to expand to 850 million sq. ft. by 2030, driven by manufacturing, logistics, e-commerce, and India's growing role in global supply chains.

India’s industrial and warehousing real estate market maintained strong momentum in the first quarter of 2026 (January–March), with total cumulative stock reaching 514 million sq. ft. across eight major cities, according to JLL. The market is projected to reach approximately 850 million sq. ft. by 2030, representing a CAGR of 11.4% from current levels and underscoring India’s expanding role as a global manufacturing and logistics hub.

"India’s industrial and warehousing market continues to evolve, with an increasing concentration of Grade A space, which grew by approximately 20% year-on-year to reach 293 million sq. ft., now representing 57% of the total market stock. Interestingly, occupiers are adopting flexible real estate strategies to address challenges such as rising land acquisition and construction costs. Models such as lease-to-buy, built-to-suit leasing, and development management are gaining traction, helping companies balance their real estate needs with capital efficiency," said Yogesh Shevade, Managing Director and Head of Industrial & Logistics, India, JLL.

The first quarter of 2026 recorded gross absorption of 18.3 million sq. ft., with manufacturing accounting for 28% of the total activity.

Manufacturing contributed 5.1 million sq. ft. to gross absorption in Q1 2026, building on the sector’s strong performance in 2025, when it leased 19.3 million sq. ft., representing 26% of the year’s total gross absorption of 73.7 million sq. ft. Engineering dominated manufacturing transactions with a 47% share, while the Auto & Ancillaries segment accounted for 32% of manufacturing activity.

Warehousing Maintains Dominance with 13.2 Mn Sq. Ft. of Absorption

Warehousing accounted for 72% of Q1 2026 gross absorption, totalling 13.2 million sq. ft. Demand was primarily driven by the third-party logistics (3PL) sector, followed by consumption-led sectors such as e-commerce, FMCG, FMCD, and retail.

Mumbai and Pune Account for Over 40% of Q1 2026 Absorption

India's industrial real estate market witnessed strong momentum in the first quarter of 2026, with Mumbai and Pune accounting for a combined 43% of total absorption. Mumbai led the market with a 22% share, followed closely by Pune at 21%, establishing the two western cities as key hubs for India's logistics and industrial expansion. NCR Delhi accounted for 20% of absorption, while Bengaluru and Chennai contributed 13% and 12%, respectively. Together, these five cities represented 88% of India's industrial real estate activity, underscoring the concentration of demand in established logistics corridors.

Manufacturing activity also revealed distinct regional specialisation during the quarter. Pune and Chennai emerged as the preferred destinations for manufacturing occupiers, recording the highest share of demand from the sector. This reflects their strong industrial ecosystems, skilled workforce, and established manufacturing infrastructure, making them preferred destinations for both domestic and export-oriented production. The strong performance of Mumbai and Pune highlights sustained confidence in Maharashtra's industrial corridor, supported by proximity to key ports, improved connectivity, and growing e-commerce fulfilment requirements. As India's supply chain network continues to evolve, these markets are expected to maintain their leadership in the coming years.

Growth Momentum Expected to Continue Through 2030

The projected increase in industrial and warehousing stock from 514 million sq. ft. in Q1 2026 to approximately 850 million sq. ft. by 2030 reflects sustained market expansion. Growth will continue to be driven by India's manufacturing push under production-linked incentive (PLI) schemes, expanding e-commerce infrastructure, and the country's growing role in global supply chain diversification.

The market's evolution, characterised by rising demand for Grade A assets, sustained occupier interest despite higher vacancy levels, and broad-based participation across sectors, positions India's industrial and warehousing real estate market for continued growth through the end of the decade.