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India’s logistics and industrial real estate market recorded its strongest first-half performance in H1 2026, with gross leasing across the top eight cities reaching a record 36.2 million square feet (MSF), according to Cushman & Wakefield. Leasing rose 18% year-on-year and 2% over H2 2025, supported by sustained demand from logistics, manufacturing and automotive occupiers. Warehousing accounted for 67% of total activity, while industrial leasing grew 36% YoY to nearly 12 MSF. Delhi NCR led city-wise demand with a 24% share, followed by Chennai at 17% and Pune at 16%.
India’s logistics and industrial real estate sector recorded its highest-ever first-half leasing volume in H1 2026, with gross leasing across the top eight cities reaching 36.2 million square feet (MSF), according to Cushman & Wakefield’s Logistics & Industrial MarketBeat report.
Leasing activity increased 18% year-on-year (YoY) and was 2% higher than H2 2025, reflecting continued occupier demand despite global trade uncertainties and a more cautious business environment.
Warehousing remained the dominant segment, accounting for 24.3 MSF, or 67% of total leasing activity. The segment grew 11% YoY, although volumes were 6% lower than the second half of 2025. Industrial leasing, meanwhile, recorded nearly 12 MSF, registering a 36% YoY increase and rising 27% compared with H2 2025.
Demand was led by third-party logistics (3PL) operators, which accounted for 12.2 MSF or 34% of overall leasing. Their activity grew 64% YoY. Engineering and manufacturing companies followed with 10.2 MSF and a 28% share, recording 6% growth. Together, the two occupier categories contributed more than 60% of total leasing.
The automobile sector emerged as another significant growth driver, accounting for 4.8 MSF or 13% of overall demand. Leasing by automobile companies nearly doubled from H1 2025, with industrial facilities accounting for around 63% of the sector’s activity. The increase was supported by investments across the electric vehicle value chain and broader manufacturing expansion.
Delhi NCR emerged as the largest market, recording 8.7 MSF of leasing and accounting for 24% of national demand. Its leasing activity increased 69% YoY. Chennai followed with 6.1 MSF and a 17% share, while Pune recorded 5.9 MSF and a 16% share. Chennai and Pune grew 39% and 32% YoY, respectively.
Mumbai recorded 4.7 MSF, accounting for 13% of demand, while Bengaluru registered 4.4 MSF with a 12% share. Ahmedabad recorded 2.2 MSF, while Hyderabad and Kolkata each reported 2.1 MSF.
Chennai recorded particularly strong industrial demand, with 3.8 MSF of industrial leasing, its highest-ever half-year volume. Pune also saw strong industrial activity at 4.2 MSF, while Bengaluru recorded nearly 1.4 MSF.
Cushman & Wakefield said the sector’s performance reflected the structural strength of India’s manufacturing and supply-chain ecosystem. The firm expects leasing momentum to receive additional support in the second half of the year from seasonal demand across e-commerce, retail and automotive sectors, although global developments could influence the pace of occupier decision-making.
Source: Cushman & Wakefield
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