Is India’s Warehousing Boom Just Getting Started? 11.4 Mn Sq Ft Absorption Signals Strong Demand

India’s top seven cities recorded warehousing and logistics absorption of 11.4 million square feet in the first quarter of 2026. This represents an 8 per cent quarter-on-quarter increase.

It also marks the fourth consecutive quarter of sequential expansion, according to a recent report Q1 2026.

Workplace solutions firm Vestian stated that the sector entered 2026 on a stronger footing.

Improved occupier sentiment, resilient domestic demand, and ongoing infrastructure upgrades supported this momentum.

Shrinivas Rao, FRICS, Chief Executive Officer of Vestian, noted that consistent growth reflects robust market fundamentals.

Rising manufacturing activity and sustained consumption continue to drive demand.

Despite a 14 per cent decline on an annual basis, leasing activity remained firm. Third-party logistics, engineering, manufacturing, and consumer goods companies led transactions.

The sector is expected to exceed 45 million square feet of annual absorption by the end of 2026, indicating sustained expansion.

Mumbai and Pune together accounted for 81 per cent of total leasing activity. These western hubs continue to dominate industrial and logistics demand.

Mumbai recorded the highest absorption at 4.76 million square feet, contributing 42 per cent of national activity. Pune followed with 4.46 million square feet, registering a 162 per cent quarterly rise and 42 per cent annual growth.

Hyderabad recorded 0.69 million square feet, reflecting a 50 per cent annual increase.

The National Capital Region registered 0.73 million square feet, marking a 57 per cent yearly decline.

Chennai, Bengaluru, and Kolkata recorded 0.59 million, 0.17 million, and 0.01 million square feet, respectively.

The report highlights a growing emphasis on supply chain resilience and modern Grade-A facilities.

Expansion into emerging Tier-I and Tier-II hubs will drive future demand.

Occupiers are expected to prioritise efficiency, speed, and technology-enabled warehousing solutions across key logistics corridors.

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