India’s industrial and warehousing sector is poised for another robust year in 2026, with average annual demand projected at 30–40 million square feet, driven by expanding manufacturing activity, policy support, and rising investor interest across both established markets and emerging logistics corridors. Industry experts say improving infrastructure, manufacturing-led initiatives, and evolving distribution strategies are sustaining strong occupier appetite for large, high-quality facilities that enable faster turnaround times and operational efficiency.

The sector saw 26.5 million square feet of leasing in the first nine months of 2025, according to commercial real estate services firm Colliers. This was an 11% rise over the same period last year.

This was despite multinational players being cautious with their investments amid global trade uncertainties.

“Their continued expansion reflects the deepening trend of outsourcing logistics functions as manufacturers and retailers seek operational efficiency, flexibility and faster turnaround times,” said Vijay Ganesh, managing director for industrial & logistics at Colliers India.

“Ecommerce and engineering and manufacturing (E&M) occupiers also stepped up space take-up during the year, supported by steady consumption demand and improving industrial output,” he said.

During the year, Industrial and logistics leasing activity remained concentrated in leading markets, with Delhi NCR, Bengaluru and Hyderabad together accounting for nearly 60% of total absorption.

These cities continued to benefit from strong infrastructure, proximity to consumption centres and deep occupier ecosystems.

The next year is also projected to have a lot of big deals of above 100,000 square feet.

Such deals made up 38% of total absorption in the first nine months of 2025, up from 27% a year earlier, according to Colliers.