Delhi NCR and Chennai lead warehousing demand across India after generating 47% of total industrial space absorption during the first nine months of 2026. Specifically, Grade A industrial and warehousing leasing reached 33.3 million square feet between January and September 2026, marking a robust 26% year-on-year growth. Furthermore, third-party logistics (3PL) providers dominated overall leasing activity while automobile occupiers recorded a surging 70% annual increase in space uptake.
Strong absorption across top Indian industrial markets
Quarterly leasing volumes surged by 63% year-on-year in Q3 2026 to touch 11.4 million square feet, marking the highest quarterly demand in recent years. Consequently, high-growth markets like Pune and Bengaluru recorded rapid momentum with annual leasing volume increases of 60% to 70%.
Additionally, key industrial clusters including Farukh Nagar and NH 48 in Delhi NCR, alongside Bhiwandi in Mumbai, drove nearly one-third of overall space absorption. Meanwhile, large-sized transactions exceeding 200,000 square feet accounted for 37% of nationwide demand, led predominantly by e-commerce and logistics occupiers.
| City / Market | Q3 2026 Demand (MSF) | YTD 2026 Demand (MSF) | YTD YoY Growth (%) | YTD 2026 Supply (MSF) |
| Delhi NCR | 3.4 | 9.3 | 26% | 6.6 |
| Chennai | 2.3 | 6.4 | 25% | 6.3 |
| Bengaluru | 2.0 | 4.5 | 61% | 4.4 |
| Mumbai | 0.9 | 3.6 | -14% | 6.2 |
| Pune | 0.9 | 3.4 | 70% | 4.5 |
| Ahmedabad | 0.6 | 2.2 | 29% | 3.9 |
| Kolkata | 0.8 | 2.1 | 31% | 0.8 |
| Hyderabad | 0.5 | 1.8 | 6% | 1.8 |
| TOTAL | 11.4 | 33.3 | 26% | 34.5 |
Robust fresh completions and stable rental trends
Developers added 34.5 million square feet of new Grade A supply during Jan–Sep 2026, representing a 19% year-on-year expansion. Specifically, Delhi NCR, Chennai, and Mumbai contributed 55% of all new project completions nationwide.
Furthermore, overall vacancy levels rose marginally to 16% as fresh completions slightly outpaced gross absorption during the nine-month period. Therefore, as Delhi NCR and Chennai lead warehousing demand, industry experts project total Indian industrial leasing to hit 40–45 million square feet by the end of 2026.
