India's Industrial and Warehousing Boom: 50 Million Sq Ft by 2026

India's industrial and warehousing sector is poised for growth, with supply projected to reach 45-50 million square feet by 2026. Driven by development and manufacturing expansion, demand in major cities surged despite supply chain challenges, highlighting the sector's resilience and potential, according to a Colliers report.

India's industrial and warehousing sector is set to expand significantly, with Grade A supply estimated to reach 45-50 million square feet by the end of 2026. This growth is underpinned by a robust development pipeline and positive investor sentiment, a recent report from Colliers reveals.

Vimal Nadar, National Director and Head of Research at Colliers India, emphasized that developers remain optimistic about long-term growth in the sector despite global uncertainties. In the first half of 2026, leasing activity across India's top eight cities rose by 12% year-on-year, totaling nearly 22 million square feet.

Delhi NCR and Chennai led the demand, accounting for over 45% of total leasing. However, second-quarter leasing saw a slight dip due to West Asian conflicts affecting supply chains. Despite this, demand is expected to recover if global volatility eases. Meanwhile, third-party logistics firms dominated leasing, and new supply outpaced demand, pushing vacancy rates to 17.2%.