Overview

During the first nine months of 2026, Grade A industrial and warehousing leasing in India reached 33.3 million sq ft, representing a 26 % year‑on‑year increase over the same period in 2025. The quarter‑three (Q3) alone recorded 11.4 million sq ft of demand, the highest in recent quarters, 63 % higher than Q3 2025.

City‑Level Contribution

  • Delhi NCR and Chennai together accounted for 47 % of total leasing, effectively half of the nine‑month demand.
  • Bengaluru and Pune together contributed close to 8 million sq ft, with annual uptake rising 60‑70 %.
  • Seven of the eight leading markets posted higher demand YoY, with only Mumbai showing a decline.
  • At the micro‑market level, Farukh Nagar & NH 48 (Delhi NCR) and Bhiwandi (Mumbai) together represented roughly one‑third of YTD leasing.

Occupier Segments

  • Third‑party logistics (3PL) firms remained the dominant occupier, responsible for nearly one‑third of total leasing and absorbing over 11 million sq ft across Jan‑Sep 2026.
  • The engineering segment contributed a 20 % share, equating to 6.6 million sq ft.
  • Automobile occupiers posted the strongest growth, with Grade A space uptake up 70 % YoY.
  • E‑commerce, electronics, and engineering segments each recorded approximately 30 % annual growth during the period.

Large‑Deal Activity

  • Deals larger than 200,000 sq ft represented around 37 % of total demand across the top eight cities.
  • E‑commerce and 3PL occupiers together accounted for 58 % of these large transactions.
  • At the city level, Delhi NCR led large‑deal volume, followed by Chennai.

Supply Dynamics

  • New Grade A supply expanded to 34.5 million sq ft, a 19 % YoY increase.
  • Delhi NCR, Chennai, and Mumbai together contributed 55 % of the new supply.
  • Ahmedabad and Pune saw more than a two‑fold increase in completions versus the same period in 2025.
  • Six of the eight major cities recorded annual growth in new supply, underscoring developer confidence despite regional geopolitical tensions.

Grade A Supply by City (Million sq ft)

| City | Q3 2026 | Q3 2025 | YoY Change | YTD 2026 | YTD 2025 | YoY Change |

| Ahmedabad | 1.6 | 0.4 | 300 % | 3.9 | 1.5 | 160 % |

| Bengaluru | 1.1 | 0.9 | 22 % | 4.4 | 2.4 | 83 % |

| Chennai | 2.1 | 2.3 | -9 % | 6.3 | 5.8 | 9 % |

| Delhi NCR | 1.2 | 2.8 | -57 % | 6.6 | 9.0 | -27 % |

| Hyderabad | 0.5 | 0.8 | -38 % | 1.8 | 1.7 | 6 % |

| Kolkata | 0.3 | 0.7 | -57 % | 0.8 | 2.0 | -60 % |

| Mumbai | 1.6 | 1.0 | 60 % | 6.2 | 4.4 | 41 % |

| Pune | 1.4 | 0.7 | 100 % | 4.5 | 2.2 | 105 % |

| TOTAL | 9.8 | 9.6 | 2 % | 34.5 | 29.0 | 19 % |

Vacancy and Rental Trends

  • Vacancy across the eight markets rose modestly to 16 % at the end of Q3 2026, reflecting the pace of supply additions outstripping cumulative demand.
  • Average rental rates remained broadly stable, though select high‑activity micro‑markets experienced rental appreciation driven by sustained demand for premium developments.

Market Commentary

> "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," said Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India.

> "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," added Vimal Nadar, National Director & Head of Research, Colliers India.

Outlook

The data suggests continued resilience in industrial real estate despite ongoing West Asia geopolitical tensions, supply‑chain disruptions, and trade realignments. With strong occupier traction, diversified demand sources, and developer confidence reflected in robust supply pipelines, the sector is positioned to sustain healthy leasing activity throughout 2026.