New Delhi, July 28 (IANS) India’s warehousing and logistics sector recorded its strongest first‑half leasing in a year even as quarterly activity eased 7 per cent in Q2 2026, a report said on Tuesday.
The report from property consultancy Vestian said that top seven cities recorded 10.6 million sq ft of absorption in the quarter taking H1 2026 absorption to 22 million sq ft, the highest first‑half leasing.
“Consequently, H1 absorption increased by 16 per cent year-on-year and 11 per cent over H2 2025, underscoring the sector’s resilience despite persistent global headwinds,” the report said.
Western India remained the key growth engine during Q2 2026, with Mumbai and Pune accounting for 65 per cent of the pan-India absorption, up from 33 per cent a year earlier.
Mumbai emerged as the largest contributor, driven by robust leasing activity in Bhiwandi, which accounted for nearly 69 per cent of the city’s absorption.
Pune remained the second-largest market but its share moderated to 17 per cent from 39 per cent in the previous quarter following strong leasing activity in Q1.
Meanwhile, NCR, Bengaluru, Chennai, and Kolkata also registered healthy demand, reflecting broad-based occupier activity across major markets.
“India’s warehousing sector is undergoing a structural transformation, evolving beyond traditional priorities such as supply chain optimization, operational efficiency, and proximity to demand centres,” said Shrinivas Rao, FRICS, CEO, Vestian.
Sustainability has emerged as a key differentiator, with occupiers increasingly seeking Grade-A green warehouses that align with their ESG commitments and long-term business objectives, he added.
Occupier demand was mainly concentrated among core industry segments during Q2 2026. Third-party logistics (3PL) companies led leasing activity with 41 per cent share, followed by consumer goods & services (12 per cent) and engineering & manufacturing (11 per cent).
These sectors accounted for nearly two-thirds of the total absorption, while energy, automobiles & auto components, and chemicals & petrochemicals collectively contributed another 22 per cent.
Amid global uncertainty, institutional investors remained selective, with investments totalling $27 million in Q2 2026, accounting for just 1 per cent of the total quarterly real estate investments. While investment volumes increased by 25 per cent over the previous quarter, they remained below the level recorded a year earlier.
—IANS
aar/ag
