Bengaluru Leads Major Indian Warehousing Markets With Record H1 Leasing Activity

Warehouse leasing in Bengaluru reached 3.1 million square feet during the first half of 2026, marking the fastest growth among India's major warehousing hubs. The figure underscores Bengaluru's continued emergence as a logistics and supply-chain anchor in the southern region, driven by sustained demand from e-commerce, third-party logistics operators and consumer goods companies.

What is driving the demand

Industry observers point to a combination of factors behind the surge. Bengaluru's deep talent pool, its concentration of technology firms, and proximity to key consumption centres in Karnataka, Tamil Nadu and Kerala have made it a preferred location for fulfilment centres and distribution hubs. Improved road connectivity and the expansion of peripheral industrial corridors have also widened the catchment area for occupiers seeking large-format, modern warehousing space.

Comparative position among major markets

Within the first half of 2026, Bengaluru outpaced the other principal Indian warehousing markets on a percentage-growth basis, reinforcing its standing as a top-three destination alongside Mumbai and the National Capital Region. The momentum is consistent with broader trends in Indian commercial real estate, where:

• Grade-A supply additions are being absorbed quickly, often before completion.
• Asking rents in micro-markets near the city have firmed up on the back of low vacancy.
• Institutional investors and developers are allocating greater capital to speculative and built-to-suit projects.

Operators active in the segment are also rethinking fulfilment strategies to keep pace with rising demand. Recent moves such as Highline Commerce's robotics-enabled expansion at Industry City illustrate how technology is becoming central to scaling warehouse operations. Talent and leadership pipelines are receiving similar attention, with firms like ODW Logistics reinforcing its executive bench to manage larger, more complex footprints. At the same time, global consolidation in logistics continues, exemplified by plans for CMA CGM's acquisition of the FedEx logistics unit, which could reshape competitive dynamics across regional supply chains.

Outlook for the remainder of 2026

With the first half already delivering record absorption, Bengaluru's warehousing market is positioned to maintain its lead if current occupier interest persists. Developers are expected to accelerate project pipelines in peripheral sub-markets, while occupiers may increasingly favour long-term leases to lock in space before further rental escalation.