Delhi NCR and Chennai Lead India’s Industrial & Warehousing Leasing Growth in H1 2026: Colliers

India’s industrial and warehousing real estate market continued its growth trajectory during the first half of 2026, with Grade A leasing reaching 21.9 million square feet across the country’s top eight cities, according to the latest report released by Colliers India. The performance represents a 12% year-on-year increase, highlighting the sector’s resilience despite ongoing global supply chain challenges and geopolitical uncertainties.

Delhi NCR and Chennai emerged as the strongest performing markets, together contributing more than 45% of the total leasing activity recorded during the January to June period. Their continued dominance reflects sustained demand from logistics operators, manufacturers and e-commerce companies seeking strategically located industrial spaces with modern infrastructure.

The report noted that leasing activity during the second quarter of 2026 stood at 10.9 million square feet, remaining largely stable despite temporary disruptions in global trade. Demand continued to be supported by businesses expanding their warehousing and distribution networks to improve supply chain efficiency and meet rising domestic consumption.

Third-party logistics (3PL) companies remained the largest occupier segment during the first half of the year, accounting for nearly 30% of overall leasing activity. Engineering companies followed with a 21% share, while e-commerce firms contributed around 16%, reflecting continued diversification in industrial space demand across sectors.

Beyond Delhi NCR and Chennai, Bengaluru, Mumbai and Pune each recorded more than 2 million square feet of leasing during H1 2026, underlining the strength of India’s major logistics hubs. Meanwhile, Ahmedabad, Pune and Kolkata posted some of the highest annual growth rates, indicating that occupier demand is expanding beyond traditional markets.

On the supply side, developers completed around 24.7 million square feet of Grade A industrial and warehousing space during H1 2026, representing a 27% increase compared with the same period last year. The strong development pipeline reflects growing confidence among developers in India’s long-term industrial and manufacturing outlook.

Colliers expects infrastructure development, expanding domestic manufacturing and improving logistics networks to continue supporting industrial and warehousing demand through the remainder of 2026, with Grade A supply projected to reach between 45 million and 50 million square feet by the end of the year.