India Logistics and Industrial Real Estate Leasing Hits Record 36.2 Million Sq Ft in H1 2026

India’s logistics and industrial real estate market recorded its strongest first-half performance on record in 2026, with leasing across the country’s top eight cities reaching 36.2 million sq ft, according to Cushman & Wakefield’s Logistics & Industrial MarketBeat report.

The leasing volume was 18% higher than the corresponding period last year and 2% above the second half of 2025. The growth comes despite uncertainty in global trade and a relatively cautious business environment, indicating that companies continue to invest in warehousing, manufacturing and supply chain infrastructure.

Warehousing remained the largest component of the market, accounting for 24.3 million sq ft, or 67% of total leasing. Industrial leasing was another major growth driver, reaching nearly 12 million sq ft. Industrial space demand increased 36% year-on-year and was 27% higher than the second half of 2025.

Third-party logistics companies led occupier demand, taking up 12.2 million sq ft during the period. The segment accounted for 34% of total leasing and recorded a 64% year-on-year increase. Engineering and manufacturing companies followed with 10.2 million sq ft, representing 28% of overall demand.

The automobile sector also emerged as a significant source of demand. Automotive companies leased 4.8 million sq ft, nearly twice the volume recorded in the first half of 2025. Industrial facilities accounted for around 63% of this activity, with electric vehicle manufacturing and the wider automotive supply chain supporting demand.

Delhi-NCR was the largest leasing market with 8.7 million sq ft, accounting for 24% of national activity. Chennai followed with 6.1 million sq ft, while Pune recorded 5.9 million sq ft.

Chennai’s performance was particularly notable on the industrial side. The city recorded 3.8 million sq ft of industrial leasing, its highest-ever half-year volume. Overall leasing in Chennai grew 39% year-on-year, highlighting the city’s expanding role as a manufacturing and logistics hub.

Mumbai recorded 4.7 million sq ft, followed by Bengaluru at 4.4 million sq ft. Ahmedabad, Hyderabad and Kolkata recorded 2.2 million sq ft, 2.1 million sq ft and 2.1 million sq ft, respectively.

Cushman & Wakefield expects leasing activity to remain supported in the second half of 2026 by seasonal demand from e-commerce, retail and automotive sectors. However, global economic and trade developments could influence occupier decisions.

The record first-half performance points to the continuing importance of logistics and industrial infrastructure as India expands its manufacturing base and modernises supply chains.