India Warehousing Leasing Climbs 15% to 36.8 Million Sq Ft in H1 2026, Knight Frank Says
Knight Frank India reports a 15% year-on-year rise in warehousing leasing to 36.8 million sq ft in H1 2026, driven by manufacturing and third-party logistics demand, with Mumbai hitting a record high.
Warehousing leasing across India rose about 15% year on year to 36.8 million square feet in the first half of 2026, according to a report from property consultant Knight Frank India. Demand from manufacturing occupiers and third-party logistics (3PL) providers accounted for most of the activity, underscoring the growing role of logistics real estate in the country's supply chains.
Mumbai sets a fresh record
Mumbai led the major markets, registering its highest-ever warehousing leasing volume in any six-month period. The city's performance was supported by a mix of industrial tenants, e-commerce-linked 3PL operators and consumer goods companies seeking large, well-located facilities near ports and consumption centres. Sustained demand from these segments pushed overall absorption above the levels seen in the comparable period of 2025.
Drivers behind the growth
Manufacturing and 3PL together anchored the national uptick, reflecting continued investment in production capacity and distribution networks. Knight Frank noted that occupiers are prioritising larger, Grade A spaces that support automation and faster turnaround, particularly in cities with strong multimodal connectivity.
- Manufacturing tenants expanded footprint to support new production lines and inventory build-up.
- 3PL providers scaled warehousing capacity to serve rising e-commerce and quick-commerce volumes.
- Consumer goods and retail occupiers continued to take up space in major distribution hubs.
Broader industry context
The leasing momentum comes as logistics players across markets reassess their networks to handle higher order volumes. Recent industry moves include Amazon expanding its logistics arm to external retailers and Colis Privé pushing deeper into European delivery, highlighting how parcel and freight operators are broadening their reach. Leadership changes at regional logistics firms, such as a Lakeland logistics provider appointing a new chief executive, point to a sector gearing up for further scale.