New Delhi, Aug 4 (IANS) India’s logistics and industrial real estate sector maintained growth momentum in the first half of 2026, as gross leasing across the top eight cities reached 36.2 million square feet supported by robust occupier demand across logistics, manufacturing and automotive sectors, a report said on Tuesday.
The report from Cushman & Wakefield said the sector saw its highest first‑half leasing volume on record, up 18 per cent year‑on‑year and 2 per cent higher than H2 2025.
Warehouse leasing continued to dominate the market, accounting for 24.3 MSF of leasing volume and 67 per cent of total absorption during H1 2026. The segment recorded 11 per cent YoY growth, although activity moderated marginally by 6 per cent compared to H2 2025.
Meanwhile, industrial leasing reached nearly 12 MSF during H1 2026, up 36 per cent YoY and 27 per cent higher than H2 2025, highlighting the increasing role of manufacturing-led expansion in shaping India’s logistics and industrial real estate market.
3PL occupiers continued to drive leasing momentum in H1 2026, accounting for 12.2 MSF of absorption and a 34 per cent share of overall demand, up 64 per cent annually. Engineering & Manufacturing (E&M) firms followed closely, leasing 10.2 MSF of space, contributing 28 per cent of total absorption and recording a 6 per cent YoY increase.
Collectively, 3PL and E&M occupiers accounted for over 60 per cent of overall leasing activity, underscoring the continued strength of India’s manufacturing and supply chain ecosystem.
“Leasing activity continued to be driven by 3PL players, manufacturing expansion and sustained investments across supply chains and industrial infrastructure,” said Abhishek Bhutani, Managing Director, Logistics & Industrial Services, Cushman & Wakefield.
The automobile sector emerged as a main growth driver, accounting for 4.8 MSF of leasing volume and 13 per cent of overall demand. Leasing by automobile occupiers nearly doubled compared to H1 2025.
The growth was primarily led by industrial facilities, which accounted for nearly 63 per cent of the sector’s leasing activity, supported by accelerated investments across the electric vehicle (EV) value chain.
Delhi NCR emerged as the largest logistics and industrial market during, recording 8.7 MSF of leasing activity and capturing 24 per cent of overall demand.
—IANS
aar/pk