Mumbai, June 08: India’s industrial and warehousing real estate market maintained strong momentum in the first quarter of 2026 (January-March 2026), with total cumulative stock reaching 514 million sq. ft across eight major cities, according to data released today by JLL. The market is firmly positioned to reach approximately 850 million sq. ft by 2030, representing a CAGR increase of 11.4% from current levels and underscoring India’s expanding role as a global manufacturing and logistics hub.
“India’s industrial and warehousing market continues to evolve with increasing concentration of Grade A space, which grew ~20% y-o-y to reach 293 million sq. ft, now representing 57% of the total market stock. Interestingly, occupiers are adopting flexible real estate strategies to address challenges like rising land acquisition and construction costs. Models such as lease-to-buy, built-to-suit leasing, development management are gaining traction, helping companies balance real estate needs with capital efficiency”, said Yogesh Shevade – Managing Director, Head of Industrial & Logistics, India, JLL.
The first quarter of 2026 recorded gross absorption of 18.3 million sq. ft, with manufacturing accounting for 28% of total activity.
Manufacturing activity contributed 5.1 million sq. ft of gross absorption in Q1 2026, building on 2025’s robust performance when the sector leased 19.3 million sq. ft, representing 26% of the year’s total gross absorption of 73.7 million sq. ft. Engineering dominated manufacturing transactions with a 47% share. The Auto & Ancillaries segment accounted for 32% of manufacturing activity.
Warehousing maintains dominance with 13.2 million sq. ft across diverse sectors
Warehousing activity captured 72% of Q1 2026’s gross absorption at 13.2 million sq. ft. The demand is majorly driven by third-party logistics sector accounting for the highest share of absorption, followed by consumption-led sectors including E-Commerce, FMCG, FMCD and Retail.
Mumbai and Pune command over 40% of absorption in Q1 2026
India‘s industrial real estate market witnessed strong momentum in the first quarter of 2026, with Mumbai and Pune commanding a dominant 43% share of total absorption. Mumbai led the charge with 22% of market activity, closely followed by Pune at 21%, establishing these two western cities as the undisputed powerhouses of India‘s logistics and industrial expansion. NCR Delhi captured 20% of absorption, maintaining its position as a critical northern gateway, while Bengaluru and Chennai accounted for 13% and 12% respectively. Together, these five cities represent 88% of India‘s industrial real estate activity, underscoring the concentrated nature of demand in established logistics corridors.
Manufacturing activity revealed distinct regional specialization during the quarter. Pune and Chennai emerged as the preferred destinations for production-focused occupiers, recording the highest share of manufacturing demand. This concentration reflects these cities’ robust industrial ecosystems, skilled labor availability, and established manufacturing infrastructure, positioning them as India‘s factory floors for both domestic and export-oriented production. The strong performance of Mumbai and Pune signals sustained confidence in Maharashtra’s industrial corridor, driven by proximity to key ports, enhanced connectivity infrastructure, and growing e-commerce fulfillment requirements. As India‘s supply chain networks continue to mature, these markets are positioned to maintain their leadership through 2026 and beyond.
Sustained growth through 2030
The trajectory from 514 million sq. ft in Q1 2026 to a projected 850 million sq. ft by 2030 indicates continued robust expansion, driven by India‘s manufacturing growth under production-linked incentive schemes, expanding e-commerce infrastructure, and the country’s strategic position in global supply chain diversification. The market’s evolution characterized by diversifying demand across quality tiers, sustained occupier appetite despite rising Grade A vacancy, and broad-based sector participation positions India‘s industrial and warehousing real estate market for sustained growth through the decade’s end.