India’s Logistics and Industrial Leasing Hits Record 36.2 MSF in H1 2026, Up 18% YoY: Cushman & Wakefield
Gurugram, August 4, 2026: India’s logistics and industrial real estate sector achieved its highest-ever first-half leasing volume in H1 2026, reaching 36.2 million square feet (MSF) across the top eight cities, according to Cushman & Wakefield’s H1 2026 Logistics & Industrial MarketBeat report. The record figure represents an 18% year-on-year growth and a 2% increase over the second half of 2025, driven by strong occupier demand across manufacturing, logistics, and automotive sectors.
Warehouse leasing continued to serve as the market’s primary engine, accounting for 24.3 MSF or 67% of total absorption in H1 2026, reflecting an 11% year-on-year increase. Industrial leasing surged 36% year-on-year to nearly 12 MSF, underscoring the growing influence of domestic manufacturing expansion on the country’s industrial real estate footprint.
Third-party logistics (3PL) providers and Engineering & Manufacturing (E&M) occupiers jointly dominated demand, contributing over 60% of total leasing activity. 3PL players captured 12.2 MSF (34% share) with a 64% year-on-year jump, while E&M occupiers secured 10.2 MSF (28% share). The automobile sector emerged as a significant growth catalyst, leasing 4.8 MSF (13% share)—nearly double its H1 2025 volume—primarily driven by electric vehicle value chain investments and robust passenger vehicle sales. The remaining absorption was distributed across e-commerce at 8%, FMCG at 6%, consumer durables and other sectors at 4% each, retail at 3%, and pharmaceuticals at 1%.
On a geographic basis, Delhi NCR led the national market with 8.7 MSF in leasing activity, capturing a 24% share of total demand and registering a 69% year-on-year surge. Chennai followed with 6.1 MSF (17% share, up 39% YoY), boosted by a record 3.8 MSF in industrial leasing. Pune recorded 5.9 MSF (16% share, up 32% YoY), driven by 4.2 MSF of industrial absorption. Mumbai and Bengaluru logged 4.7 MSF (13% share) and 4.4 MSF (12% share), respectively, while Ahmedabad recorded 2.2 MSF (up 31% YoY). Kolkata and Hyderabad each registered 2.1 MSF in gross leasing.
Specific city performance varied across property types. Ahmedabad saw warehouse leasing rise 54% year-on-year to 1.8 MSF, while its industrial segment dipped to 0.4 MSF. Bengaluru recorded a 78% year-on-year jump in warehouse leasing to 3.1 MSF, alongside 1.4 MSF in industrial space. Delhi NCR’s growth was powered by 8.0 MSF in warehouse leasing (up 66% YoY) and 0.7 MSF in industrial transactions. Hyderabad’s industrial leasing grew over threefold to 0.62 MSF despite a dip in warehousing to 1.49 MSF, while Kolkata logged 1.7 MSF in warehousing and 0.5 MSF in industrial space. Mumbai’s warehousing reached 4.7 MSF amid supply-constrained industrial activity, whereas Pune achieved 1.7 MSF in warehousing and 4.2 MSF in industrial leasing.
Abhishek Bhutani, Managing Director, Logistics & Industrial Services, Cushman & Wakefield, said, “India’s logistics and industrial sector has built on the strong momentum of 2025 to deliver a record first half in 2026, reinforcing the structural strength of occupier demand. Leasing activity continued to be driven by 3PL players, manufacturing expansion and sustained investments across supply chains and industrial infrastructure. The strong leasing activity witnessed across key markets, particularly in Delhi NCR, was also supported by healthy supply additions during the period, enabling occupiers to execute expansion plans.”
Commenting on the market outlook, Bhutani added, “Despite an external environment marked by geopolitical tensions and trade-related uncertainties, occupier demand has remained resilient. While businesses have adopted a more measured approach to decision-making in recent months, expansion plans remain firmly on track, reflecting long-term confidence in India’s manufacturing and consumption story. Looking ahead, we expect leasing momentum to be supported by seasonal demand from the e-commerce, retail and automotive sectors in the second half of the year. At the same time, global developments will continue to influence the pace of decision-making, although India’s long-term fundamentals remain well positioned to support sustained growth in the sector.”
