Industrial and warehousing demand across India’s top eight cities remained robust in Q1 2026, with Grade A leasing reaching 11 million sq ft, marking a 22 percent year-on-year growth, according to Colliers. Delhi NCR continued to lead demand with a 28 percent share, followed by Chennai at 21 percent, together contributing nearly half of the quarterly leasing.Hyderabad and Bengaluru also recorded strong momentum, with Grade A space uptake rising 2–3 times compared to Q1 2025. Among micro-markets, Hoskote–Narsapura in Bengaluru emerged as the most active location with 1.4 million sq ft of leasing, while Bhiwandi followed with around 1.1 million sq ft.Third Party Logistics (3PL) players remained the biggest demand driver during the quarter, accounting for nearly one-third of the total uptake. Leasing by 3PL firms stood at about 3.5 million sq ft and was 1.8 times higher than Q1 2025, supported by growing outsourcing trends, network expansion and supply chain modernization. E-commerce and automobile companies also reported strong activity, cumulatively contributing around 32 percent of leasing, with both segments recording over 1.5 million sq ft each.“Leasing activity in the first quarter of 2026 remained strong at 11 million sq ft, marking a 22% annual increase and underscores sustained demand for Grade A space. Demand from 3PL, E-commerce and Automobile players remained firm during Q1 2026, as occupier diversification continued to gain momentum,” said Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India.Colliers also noted that new supply in Q1 2026 reached 12.5 million sq ft, reflecting a 33 percent annual rise. However, the firm cautioned that ongoing global supply chain disruptions and geopolitical uncertainties could moderate near-term growth, even as long-term fundamentals remain intact.Large-sized transactions above 200,000 sq ft accounted for 48 percent of leasing at 5.3 million sq ft, with e-commerce firms leading these deals.