Driven by sustained occupier demand across industry segments, India's warehousing and logistics sector recorded an absorption of 10.58 million square feet in the third quarter of 2026, IANS reported on Tuesday, citing a Vestian report.

Source: IANS via The Freedom Press

Cumulative absorption reached 32.6 million sq ft in the first nine months of 2026, marking the highest level recorded over the past three years. Despite geopolitical uncertainties and mounting macroeconomic pressures, leasing activity remained resilient, edging up 0.2 per cent quarter-on-quarter and registering 15 per cent year-on-year growth.

Source: IANS via Hi India

10.58 million sq ftWarehousing absorption, Q3 2026
32.6 million sq ftCumulative leasing, Jan-Sep 2026 — 3-year high
$332 millionInstitutional investment in Q3 2026
+15%Year-on-year leasing growth

The sector attracted institutional investments worth $332 million in Q3 2026. Investments accounted for 17 per cent of total quarterly investments, the highest share in any quarter over the past two years, the report said.

Source: IANS via The Freedom Press

Manufacturing demand rises, 3PL share eases

Third-party logistics (3PL) operators continued to lead leasing activity, but their share of pan-India absorption fell to 29 per cent in Q3 from 41 per cent in the previous quarter. Engineering and manufacturing followed with a 23 per cent share, and automobiles and auto components with 14 per cent.

Source: IANS via The Freedom Press

'India's warehousing and logistics sector is consistently evolving beyond traditional demand drivers, with increased participation from manufacturing, automotive and other industrial segments complementing the established third-party logistics (3PL) sector,' said Shrinivas Rao, FRICS, CEO of Vestian. He said sustained occupier demand, infrastructure upgrades and policy support continue to strengthen the sector's long-term potential.

Source: Vestian report via IANS

Chennai leads the city table

Chennai led leasing activity in India with an absorption of 2.89 million sq ft, registering quarterly growth of 320 per cent and annual growth of 156 per cent. Mumbai ranked second with 2.70 million sq ft, though its growth momentum declined 46 per cent quarter-on-quarter and 37 per cent year-on-year. Pune stood third with 2.2 million sq ft, rising 245 per cent annually. Looking ahead, sustained occupier demand is expected to accelerate the uptake of modern, technology-enabled warehousing across established and emerging logistics hubs, the report said.

Source: IANS via The Freedom Press