Pune and Bengaluru together accounted for nearly 8 million sq ft of industrial and warehousing space uptake during the first nine months of 2026. Overall, seven of the eight leading markets recorded higher leasing volumes than in the corresponding period of 2025, indicating sustained demand across major industrial and logistics hubs.
Third-party logistics (3PL) companies remained the largest occupier group in most cities, accounting for nearly one-third of total leasing during the period. Engineering companies followed, contributing around 20% of demand.
Among the key industrial and warehousing clusters, Farukh Nagar and NH-48 in Delhi-NCR, along with Bhiwandi in Mumbai, continued to attract occupiers. Together, these locations accounted for nearly one-third of year-to-date leasing activity.
The sector recorded further growth in the third quarter of 2026, with leasing exceeding 11 million sq ft, up 63% year-on-year. The quarter registered the highest leasing activity in recent years, reflecting continued demand despite renewed escalation of the West Asia crisis, supply chain disruptions and trade realignments.
The growth in leasing across major markets highlights the continued requirement for industrial and logistics space as businesses expand distribution networks, strengthen supply chains and respond to changing manufacturing and consumption patterns.
India’s industrial & warehousing sector witnessed significant demand acceleration during Q3 2026, with leasing volumes surging by 63% YoY to 11.4 million sq ft of Grade A space. Demand continued to be anchored by Delhi NCR & Chennai, which together accounted for half of the quarter’s absorption, while Bengaluru & Pune emerged as high-growth markets, recording 2-4X times increase in leasing volumes on a yearly basis. The strong performance across key markets positions the sector to achieve 40-45 million sq ft of leasing in 2026." says Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India.
3PL firms remained the prominent demand driver followed by engineering firms
3PL players retained their position as the largest occupier segment during Jan-Sep 2026, with over 11 million sq ft of space uptake, nearly one-third of India’s industrial & warehousing demand. This was followed by engineering segment which had a 20% demand share and contributed 6.6 million sq ft of space uptake. Notably, automobile firms recorded the strongest growth amongst occupier segments, with Grade A space uptake surging 70% YoY. Overall, the momentum in leasing across demand segments remained noteworthy, with e-commerce, electronics & engineering segments registering close to 30% annual growth each during the first nine months of 2026.Large sized deals account for nearly 37% of industrial & warehousing space uptake
During Jan-Sep 2026, large deals (>200,000 sq ft) constituted around 37% of the overall demand across the top 8 markets of the country. Majority of these larger deals came from e-commerce and 3PL occupiers, which together comprised around 58% of such large deals during the first nine months of 2026. At the city level, Delhi NCR dominated large-sized transactions, followed by Chennai.“The industrial & warehousing sector maintained strong momentum in Jan-Sep 2026, led by robust demand from both logistics and manufacturing occupiers. While 3PL firms accounted for about one-third of overall leasing, engineering and e-commerce firms accounted for 15-20% share in leasing each. The broadening occupier base highlights the sector’s increasing diversification, reducing reliance on a single demand segment and reinforcing the market’s long-term growth prospects. This diversified demand profile, coupled with ongoing manufacturing expansion and supply chain investments, is expected to sustain healthy leasing activity across India’s key industrial and warehousing markets.” says Vimal Nadar, National Director & Head of Research, Colliers India.
New supply remained robust across top 8 cities, up 19% on an annual basis
Supply additions reached 34.5 million sq ft during Jan-Sep 2026, a 19% YoY rise, reflecting sustained developer confidence across the top eight cities. Completions were seen across key markets, led by Delhi NCR, Chennai & Mumbai, which collectively contributed 55% of the new supply during Jan-Sep 2026.Ahmedabad & Pune witnessed more than two-fold increase in completions compared to corresponding period of 2025. Importantly, six of the eight major cities recorded annual growth in new supply, underscoring the prevailing optimism and positive sentiment even in the wake of ongoing regional conflicts.
