Cumulative absorption reached 32.6 million sq ft in the first nine months of 2026, the highest level recorded over the past three years.
Third-party logistics (3PL) continued to lead occupier demand, accounting for 29% of pan-India absorption in Q3 2026, compared with 41% in the previous quarter. Engineering and manufacturing followed with a 23% share, while automobiles and auto components accounted for 14%.
The automobiles and auto components segment recorded its highest-ever quarterly absorption of 1.5 million sq ft in the past seven years. It also achieved its highest share of pan-India absorption over the same period. Together, 3PL, engineering and manufacturing, and automobiles and auto components accounted for 66% of total absorption. Electronic components and equipment, consumer goods and services, energy, chemicals and petrochemicals, and information technology collectively contributed another 24%.
The sector also attracted institutional investments worth USD 332 million in Q3 2026, accounting for 17% of total quarterly investments. This was the highest share recorded in any quarter over the past two years. Sustained occupier demand, infrastructure upgrades and government-led policy support continued to strengthen investor sentiment.
Shrinivas Rao, FRICS, CEO, Vestian, said India's warehousing and logistics sector was evolving beyond traditional demand drivers, with increased participation from manufacturing, automotive and other industrial segments complementing the established 3PL sector. He added that sustained occupier demand, infrastructure development and policy support were strengthening the sector's long-term potential. India's expanding consumption base and manufacturing ecosystem were also creating opportunities for modern and efficient warehousing facilities.
