Overview

Colliers India released a press briefing on 23 Oct 2026 highlighting robust performance in India’s Grade A industrial and warehousing market during the first nine months of 2026. Overall leasing activity reached 33.3 million sq ft, marking a 26% year‑on‑year (YoY) increase.

Demand Highlights

  • Delhi NCR and Chennai together generated 47% of total leasing, effectively accounting for nearly half of the YTD demand.
  • The eight leading cities showed strength, with seven posting higher demand versus the same period in 2025.
  • Pune and Bengaluru each contributed close to 8 million sq ft of cumulative demand, reflecting 60‑70% annual growth.
  • Q3 2026 alone recorded 11.4 million sq ft of Grade A space uptake, a 63% YoY rise and the highest quarterly leasing in recent years.
  • City‑level Q3 absorption (million sq ft) and YoY changes were:
  • Ahmedabad: 0.6 vs 0.5 in Q3 2025 (+20%); YTD 2.2 vs 1.7 (+29%).
  • Bengaluru: 2.0 vs 0.8 (+150%); YTD 4.5 vs 2.8 (+61%).
  • Chennai: 2.3 vs 1.4 (+64%); YTD 6.4 vs 5.1 (+25%).
  • Delhi NCR: 3.4 vs 1.8 (+89%); YTD 9.3 vs 7.4 (+26%).
  • Hyderabad: 0.5 vs 0.6 (‑17%); YTD 1.8 vs 1.7 (+6%).
  • Kolkata: 0.8 vs 0.6 (+33%); YTD 2.1 vs 1.6 (+31%).
  • Mumbai: 0.9 vs 1.1 (‑18%); YTD 3.6 vs 4.2 (‑14%).
  • Pune: 0.9 vs 0.2 (+350%); YTD 3.4 vs 2.0 (+70%).
  • Total: 11.4 vs 7.0 (+63%); YTD 33.3 vs 26.5 (+26%).

Occupier Segments

  • Third‑party logistics (3PL) firms were the dominant occupier, responsible for nearly one‑third of total demand and accounting for over 11 million sq ft of space uptake.
  • Engineering firms contributed a 20% share, equivalent to 6.6 million sq ft.
  • Automobile occupiers posted the strongest segmental growth, with a 70% YoY increase in Grade A space uptake.
  • E‑commerce, electronics and engineering segments each recorded approximately 30% annual growth.

Large Deals

  • Transactions exceeding 200,000 sq ft represented about 37% of total demand across the top eight markets.
  • E‑commerce and 3PL occupiers together comprised roughly 58% of these large‑size deals.
  • At the city level, Delhi NCR led large‑deal activity, followed by Chennai.

Supply and Vacancy

  • New Grade A supply expanded 19% YoY to 34.5 million sq ft in Jan‑Sep 2026.
  • Supply additions were led by Delhi NCR, Chennai and Mumbai, which together supplied 55% of the new inventory.
  • Ahmedabad and Pune saw more than a two‑fold increase in completions versus 2025.
  • Six of the eight major cities recorded annual supply growth, indicating continued developer confidence despite regional geopolitical tensions.
  • City‑level Q3 2026 supply (million sq ft) and YoY changes were:
  • Ahmedabad: 1.6 vs 0.4 (+300%); YTD 3.9 vs 1.5 (+160%).
  • Bengaluru: 1.1 vs 0.9 (+22%); YTD 4.4 vs 2.4 (+83%).
  • Chennai: 2.1 vs 2.3 (‑9%); YTD 6.3 vs 5.8 (+9%).
  • Delhi NCR: 1.2 vs 2.8 (‑57%); YTD 6.6 vs 9.0 (‑27%).
  • Hyderabad: 0.5 vs 0.8 (‑38%); YTD 1.8 vs 1.7 (+6%).
  • Kolkata: 0.3 vs 0.7 (‑57%); YTD 0.8 vs 2.0 (‑60%).
  • Mumbai: 1.6 vs 1.0 (+60%); YTD 6.2 vs 4.4 (+41%).
  • Pune: 1.4 vs 0.7 (+100%); YTD 4.5 vs 2.2 (+105%).
  • Total: 9.8 vs 9.6 (+2%); YTD 34.5 vs 29.0 (+19%).
  • Vacancy across the top eight cities rose modestly to 16% at the end of Q3 2026 as supply outpaced cumulative demand.
  • Average rental rates remained broadly stable, though select high‑activity micro‑markets experienced rental appreciation.

Executive Commentary

  • Vijay Ganesh, Managing Director – Industrial & Logistics Services, Colliers India, stated that the sector is positioned to achieve 40‑45 million sq ft of leasing in 2026, driven by the strong performance of Delhi NCR, Chennai, Bengaluru and Pune.
  • Vimal Nadar, National Director & Head of Research, Colliers India, highlighted the diversification of occupier base—3PL, engineering and e‑commerce each contributing 15‑20% of leasing—reducing reliance on a single segment and supporting long‑term growth prospects.

About Colliers

Colliers (NASDAQ: CIGI, TSX: CIGI) is a global professional services and investment management firm with $6 billion in annual revenue, 28,000 professionals and $110 billion in assets under management.