Industrial and warehousing space leasing reached a record 59.1 million sq ft during January-September across India's top 24 cities, according to Savills India data. This represents a 7% increase from the 55.3 million sq ft leased in the corresponding period of the previous year. The growth was primarily driven by demand from sectors including light manufacturing, e-commerce, and third-party logistics companies.
Tier-I cities, including Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Delhi-NCR, and Pune, accounted for 47.2 million sq ft of leasing during the January-September period, up from 44 million sq ft in the year-ago period. Meanwhile, tier-II and tier-III cities recorded leasing of 11.9 million sq ft, compared to 11.3 million sq ft in the previous year. These cities include Guwahati, Bhubaneswar, Patna, Hosur, Coimbatore, Rajpura, Lucknow, Jaipur, Nagpur, Surat, Indore, Kochi, Hubli, Vizag, Belgaum and Anantapur.
Fresh supply of industrial and warehousing spaces increased significantly by 25% annually to 68.9 million sq ft during January-September, as reported by Savills India. The consultant expects India's industrial and logistics sector to witness steady growth in 2026, supported by manufacturing expansion and sustained demand from third-party logistics, FMCG/FMCD, retail, and e-commerce occupiers. Rising consumption, supply chain realignment, and growing activity in tier-II and tier-III cities are expected to continue driving demand in the sector.
Mukesh Choudhary, Managing Director of realty firm Accuspace, noted that demand for quality industrial and logistics spaces is growing, with Tier-II and III markets like Jaipur driving nearly one fifth of the country's total absorption. "While Tier-I hubs continue to lead, Tier-II and III markets like Jaipur are carving out a distinct and critical position," he added. Choudhary said the company is witnessing a structural shift as e-commerce, third-party logistics providers, and manufacturing units look for high-grade regional hubs to optimize, de-risk and decentralise their supply chain. To meet this demand, he said the new parks are being developed across the country.
