18/09/2026
India's logistics and industrial real estate market recorded gross leasing of 36.2 million sq ft across the top eight cities in H1 2026, the highest first-half volume on record, according to Cushman & Wakefield. Leasing activity grew 18% year on year and was 2% higher than H2 2025.
The composition of demand is shifting toward manufacturing, with warehousing accounting for the majority of absorption at 24.3 million sq ft, or 67% of total leasing.
Warehousing activity grew 11% year on year but declined 6% compared with H2 2025, while industrial leasing reached nearly 12 million sq ft, up 36% year on year and 27% compared with the previous half.
Occupier demand remains concentrated among key segments, with Vestian, which covers seven cities, reporting that third-party logistics companies accounted for 41% of leasing in Q2 2026, followed by consumer goods and services at 12% and engineering and manufacturing at 11%.
Capital allocation remains relatively limited despite the growth in investment during the period. Vestian reported USD 49 million of institutional investment in the segment in H1 2026, up 53% from USD 32 million a year earlier, while warehousing and industrial accounted for only around 1% of total institutional investment in Indian real estate.
This gap between strong occupier demand and limited capital allocation is becoming increasingly relevant as the sector matures. Leasing volumes have reached record first-half levels, manufacturing-led demand is strengthening, and operating fundamentals are improving, while institutional participation remains comparatively selective.
As more projects reach institutional standards and the market continues to deepen, this gap could create a larger role for structured capital across development, expansion and asset stabilisation.
