Industrial and Warehousing Absorption Hits 34.8 Million Sq Ft in H1 2026: Savills India
Savills India reports that industrial and warehousing absorption reached 34.8 million square feet in the first half of 2026, underscoring sustained demand for logistics real estate across the country.
Industrial and warehousing absorption in India reached 34.8 million square feet in the first half of 2026, according to data released by Savills India. The figure points to continued momentum in the country's logistics real estate sector as occupiers expand supply chain networks and third-party logistics providers scale up operations.
Demand Drivers Across Key Markets
Savills India attributed the leasing activity to a combination of factors, including the rise of third-party logistics (3PL) operators, manufacturing diversification, and sustained consumption growth in tier-1 and tier-2 cities. Occupiers continued to favour large-format, Grade-A facilities in established logistics corridors that offer better connectivity to ports, highways, and urban consumption centres.
Broader Industry Context
The H1 2026 numbers add to a multi-year trend of rising warehousing uptake in India, even as developers navigate evolving land-use policies and infrastructure investments. The performance of established 3PL players is widely seen as a bellwether for the segment's overall health. RedStone Logistics' continued recognition among the country's top 3PL providers highlights the scale at which leading operators are absorbing space.
What to Watch in the Second Half
Analysts will look to the second half of 2026 for confirmation of whether the pace of absorption can be sustained amid macroeconomic headwinds and shifting tenant preferences. Key indicators include:
- Net absorption in emerging micro-markets beyond the traditional top three cities
- Pre-commitment activity from e-commerce and quick-commerce occupiers
- Vacancy trends in older, non-Grade-A stock as tenants consolidate into modern facilities
For a deeper look at how the warehousing landscape has evolved, a new industry report analysing a decade of structural shifts in third-party logistics offers additional context. Leadership changes across major operators, such as the recent appointment of Tyler Mitchell as president of East Coast Warehouse & Distribution, also reflect the growing professionalisation of the sector as it scales.