Delhi NCR, Chennai Lead Industrial and Warehousing Leasing in H1 2026: Colliers
The second quarter, however, witnessed a marginal dip in demand as compared to Q1 2026 on account of supply chain disruptions stemming from the ongoing conflict in West Asia. With around 11 million sq ft of leasing in Q2 2026, Grade A space uptake declined by mere 1% on a quarterly basis. With renewed focus on improving domestic manufacturing capabilities, overall demand could be on an upswing in upcoming quarters, provided impact of global volatilities remain limited.
During H1 2026, 3PL operators retained their position as the largest demand driver, accounting for around 30% of the total leasing and driving the overall momentum. Demand from Engineering and E-commerce players also remained strong, with a leasing share of 21% and 16% respectively. Notably, industrial & warehousing space uptake continued to be concentrated within select high-performing logistics clusters. Bhiwandi in Mumbai and Farukh Nagar & NH 48 in Delhi NCR together accounted for over one-third of the demand during the first half of 2026.
“The first half of 2026 reaffirmed the ongoing demand scale-up in India's industrial & warehousing market by recording ~22 million sq ft of Grade A space uptake, a YoY rise of 12%. The annual growth is particularly significant, given the challenging second quarter amid evolving global supply chains. Quarterly demand remained firm in Q2 at nearly 11 million sq ft, albeit witnessing a marginal 1% dip compared to the previous quarter. While Delhi NCR & Chennai continued to anchor leasing during H1 2026, cities such as Pune, Ahmedabad & Kolkata witnessed growth of 30% and upwards, signaling the emergence of a more diversified demand landscape. Going forward, infrastructure-led development and expanding domestic manufacturing, coupled with moderating global headwinds, are expected to reinforce the growth trajectory of industrial & warehousing sector through 2026.” says Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India.
3PL players continue to dominate leasing while Engineering & E-commerce firms gain ground during H1 2026
While 3PL players retained their position as the largest occupier segment, accounting for 30% of total leasing activity in H1 2026, demand growth is being increasingly supported by a wider set of occupiers. Engineering firms emerged as the second-largest demand driver, contributing 21% of overall space uptake, followed by E-commerce segment with a 16% share. Notably, at 1.4 million sq ft of demand in H1 2026, the electronics segment witnessed about 2X annual growth, reflecting the ongoing occupier diversification.
Large sized deals account for around 40% of industrial & warehousing space uptake across the top 8 cities
During H1 2026, large deals (>200,000 sq ft) accounted for about 40% of the overall demand. Interestingly, majority of these larger deals came from E-commerce occupiers, comprising over 30% of such large deals during H1 2026. They were followed by the Automobile and 3PL segments with over 20% share each within the larger deals. At the city level, Delhi NCR followed by Chennai dominated large-sized deals during H1 2026.
“Amid ongoing conflict in Western Asia and constantly evolving global trade realities, India’s industrial & warehousing market demonstrated remarkable resilience in H1 2026. The sustained dominance of 3PL occupiers, coupled with growing participation from Engineering and E-commerce firms, underscores the vitality of India’s domestic manufacturing capabilities and consumption driven economy. Buoyed by these fundamental strengths, developers remained confident about the long-term growth prospects of India’s industrial & warehousing market. In fact, new supply during H1 2026 stood at 25 million sq ft, a 27% YoY increase. Looking ahead, a strong development pipeline and upbeat investor sentiment are expected to drive Grade A supply to 45-50 million sq ft by the end of 2026.” says Vimal Nadar, National Director & Head of Research, Colliers India.
New supply outpaces demand in H1 2026, up 27% on an annual basis
The first half of 2026 witnessed about 25 million sq ft of Grade A supply across the top eight cities, marking a YoY increase of 27%. This reflects growing developer confidence, as they continue to focus on delivering high-quality industrial & warehousing spaces equipped with modern specifications and technology-enabled features.
Delhi NCR and Mumbai collectively accounted for over 40% of the completions during H1 2026. Notably, Q2 2026 recorded about 12.2 million sq ft of completions, a 22% rise YoY, highlighting the continued pace of project deliveries across the top eight cities of the country. Interestingly, during H1 2026, with more than 3 million sq ft of completions each in Bengaluru and Pune, new supply in these cities was almost twice as compared to H1 2025.
Published on:
16 July 2026
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