Industrial and warehousing demand in India sees 22 pc growth in Jan-March
The industrial and warehousing demand across the top eight cities remained strong in the January-March period, witnessing a 22 per cent annual growth with 11 million square feet of leasing, a report said on Wednesday.
Delhi-NCR continued to drive demand during the quarter, with 28 per cent share, followed by Chennai with 21 per cent share, according to the Colliers report.
Notably, leasing in Hyderabad and Bengaluru also remained robust, with Grade A industrial and warehousing space uptake in Q1 2026, growing at 2-3 times times compared to the same period of last year.
Third party logistics (3PL) players drove overall demand during the quarter, forming around one-third of the space uptake, said the report.
In fact, demand from 3PL during Q1 2026 was 1.8X times compared to the leasing activity of Q1 2025.
This traction was aided by expanding logistics requirements and supply chain modernisation. Additionally, E-commerce and Automobile segments also recorded strong leasing in Q1 2026.
“Although long-term fundamentals of India’s industrial and warehousing market remain intact, developers are likely to adopt a measured approach with respect to supply additions in the near term amid prevailing geopolitical crisis and supply chain disruptions,” said Vijay Ganesh, Managing Director, Industrial and Logistics Services, Colliers India.
Nevertheless, continued policy support to enhance domestic manufacturing and logistics capabilities will remain pivotal in navigating potential downside risks, he mentioned.
Demand from e-commerce and automobile players also remained firm and cumulatively accounted for about 32 per cent of the leasing during the quarter.
Both these segments saw over 1.5 million sq ft leasing during the quarter. Amid continued diversification, FMCG and electronics firms also saw over 2 times leasing during the quarter, on an annual basis.
“The prolonged West Asia crisis remains a key monitorable factor, with potential implications for the Indian economy and the industrial and warehousing sector over the next few quarters,” said Vimal Nadar, National Director & Head, Research, Colliers India.
