Large transactions of over 200,000 sq ft accounted for about 40 per cent of total leasing during the period
Delhi NCR and Chennai retained their position as India’s top industrial and warehousing markets in the first half of 2026, together accounting for more than 45 per cent of the country’s Grade A leasing activity.
Both Delhi and Chennai, being established logistics hubs, offer robust infrastructure and mature industrial ecosystems for companies, said industry experts.
Industrial and warehousing leasing across the top eight cities reached nearly 22 million sq ft during H1 2026, up 12 per cent year-on-year, according to a report by Colliers. Mumbai, Pune and Bengaluru each recorded more than 2 million sq ft of Grade A space uptake during the period, underscoring continued resilience across major logistics hubs.
Colliers said leasing activity in the second quarter (April-June) stood at around 11 million sq ft, marginally lower by 1 per cent compared with the previous quarter, reflecting supply chain disruptions linked to the ongoing conflict in West Asia.
anchor leasing
It noted that while Delhi NCR and Chennai continued to anchor leasing, cities such as Pune, Ahmedabad and Kolkata recorded growth of 30 per cent or more, signalling a more diversified demand landscape. Infrastructure-led development, expanding domestic manufacturing and moderating global headwinds are expected to support the sector’s growth through the rest of 2026.
Large transactions of over 200,000 sq ft accounted for about 40 per cent of total leasing during the period. Delhi NCR recorded the highest share of large transactions, followed by Chennai.
E-commerce companies contributed more than 30 per cent of these large deals, followed by automobile and 3PL players with over 20 per cent each.
Ramnath Subramaniam, Joint Managing Director, TVS ILP, said while Delhi NCR and Chennai continue to anchor industrial and warehousing demand, the more significant trend is the emergence of a broader and more diversified demand landscape. Businesses are increasingly evaluating industrial corridors and Tier-II and Tier-III locations that offer manufacturing ecosystems, multimodal connectivity, skilled labour and proximity to suppliers and consumers, he said, citing Chakan, Coimbatore and Hosur as emerging growth centres, he said.
Subramaniam attributed the shift to sustained government investments through initiatives such as PM Gati Shakti, the National Logistics Policy, dedicated freight corridors and industrial corridor development.
Neeraj Balani, Chief Customer Officer, Welspun One, said the continued strength of Delhi NCR and Chennai reflects occupiers’ preference for established logistics hubs with robust infrastructure and mature industrial ecosystems.
Balani added that rising land and labour costs in metropolitan areas are accelerating the shift towards Tier-II cities, where lower operating costs and better workforce availability offer long-term advantages.
Published on July 20, 2026
