Industrial Leasing Grows 13% to 18.3 Million Sq Ft

09 Jun 2026 CW Team

India’s industrial and warehousing real estate market recorded gross absorption of 18.3 million sq ft in Q1 2026, marking a 13 per cent year-on-year growth, according to JLL. Total industrial and warehousing stock stood at 514 million sq ft across eight major cities.

JLL projected that the market could reach around 850 million sq ft by 2030, reflecting a CAGR of 11.4 per cent. Growth is being supported by manufacturing expansion under production-linked incentive schemes, rising e-commerce demand and India’s growing role in global supply chain diversification.

Grade A industrial and warehousing space grew around 20 per cent year-on-year to 293 million sq ft, accounting for 57 per cent of total market stock. Yogesh Shevade, Managing Director and Head of Industrial & Logistics, India, JLL, said occupiers are increasingly adopting flexible real estate models such as lease-to-buy, built-to-suit leasing and development management to balance expansion with capital efficiency.

Manufacturing accounted for 28 per cent of Q1 demand, with gross absorption of 5.1 million sq ft. Engineering led manufacturing transactions with a 47 per cent share, followed by the auto and ancillaries segment at 32 per cent.

Warehousing remained the dominant category, contributing 72 per cent of gross absorption at 13.2 million sq ft. Demand was led by third-party logistics, followed by consumption-driven sectors such as e-commerce, FMCG, FMCD and retail.

Mumbai and Pune together accounted for 43 per cent of total absorption in Q1 2026, with Mumbai at 22 per cent and Pune at 21 per cent. NCR Delhi contributed 20 per cent, while Bengaluru and Chennai accounted for 13 per cent and 12 per cent, respectively.

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