Industrial and Warehousing Leasing Hits Record 59.1 Million Sq Ft Across 24 Indian Cities

Industrial and warehousing space leasing across 24 Indian cities reached a record 59.1 million square feet during January–September 2026, reflecting sustained demand from manufacturing, logistics and e-commerce businesses. According to real estate consultancy Savills India, leasing activity increased 7% year-on-year from 55.3 million square feet in the corresponding period of 2025.

The growth highlights the expanding requirement for industrial facilities, distribution centres and warehouses as companies strengthen their supply chains and respond to changing consumption patterns. Demand from light manufacturing units, third-party logistics (3PL) providers and e-commerce operators remained among the key drivers of leasing activity.

Major Markets Account for Bulk of Leasing

The eight major industrial and logistics markets—Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Delhi-NCR and Pune—recorded a combined 47.2 million square feet of leasing during the first nine months of 2026. This compares with 44 million square feet in the same period last year.

Activity also increased in smaller markets. Tier-II and Tier-III cities recorded 11.9 million square feet of industrial and warehousing leasing, up from 11.3 million square feet a year earlier. Locations such as Coimbatore, Hosur, Jaipur, Lucknow, Indore and Visakhapatnam are among the markets included in the wider assessment.

The expansion beyond established metropolitan centres reflects growing interest in regional distribution networks and industrial locations closer to emerging consumption markets.

Fresh Supply Increases 25%

New industrial and warehousing space added across the 24 cities rose 25% year-on-year to 68.9 million square feet during January–September 2026, according to Savills India. The increase in supply accompanied the rise in leasing as businesses continued to seek space for manufacturing, storage and distribution.

Savills India expects the industrial and logistics sector to maintain steady growth through the remainder of 2026. Manufacturing expansion and demand from 3PL operators, fast-moving consumer goods companies, consumer durables manufacturers, retailers and e-commerce businesses are expected to support activity.

Mukesh Choudhary, Managing Director of Accuspace, said demand for quality industrial and logistics facilities was increasing. While major markets continued to lead, smaller cities such as Jaipur were gaining importance. He noted that Tier-II and Tier-III markets together accounted for nearly one-fifth of the country’s total absorption.

Regional Hubs Gain Importance

Lalit Parihar, Managing Director of Aaiji Group, highlighted robust demand across Gujarat markets, including Ahmedabad, Surat and Dholera.

For developers and investors, the combination of rising leasing volumes and fresh supply points to opportunities across established industrial hubs and emerging regional markets. The pace of manufacturing growth, supply-chain realignment and expansion of organised logistics networks will remain important factors shaping demand in the coming months.