India’s warehousing and industrial leasing market recorded 12% year-on-year growth in Q3 2026. The growth highlights strong demand for industrial spaces and logistics facilities. It also reflects the resilience of India’s logistics sector despite rising crude oil prices and inflation.
Mukesh Choudhary, Managing Director of real estate company Accuspace, highlighted the changing demand patterns in the sector. According to him, manufacturing companies and third-party logistics (3PL) providers accounted for 76% of total leasing during the quarter.
This growth reflects rising investment in production capacity and supply-chain efficiency. Companies are also seeking strategically located facilities to improve their operations.
Another important trend is the expansion of manufacturing demand beyond traditional industrial hubs. This shift is creating opportunities in emerging industrial and logistics markets across India.
The demand for Grade A warehouses is also increasing. These facilities offer organised infrastructure, modern technology and better operational efficiency. As a result, occupiers are showing greater interest in high-quality warehousing spaces.
Choudhary expects several factors to support future market growth. These include manufacturing expansion, e-commerce growth and rising 3PL penetration. Supply-chain formalisation is also expected to increase demand for organised warehouse facilities.
Overall, India’s warehousing sector continues to show growth potential. Strong occupier demand and the preference for Grade A facilities are expected to support leasing activity and rental growth.
