Industrial/Warehouse Leasing Up 16% in Top 24 Cities

New Delhi, Apr 1 (PTI) Leasing of industrial and warehousing spaces grew 16 per cent in January-March across 24 major cities on better demand from e-commerce players, third-party logistics firms and manufacturers, according to Savills.

Real estate consultant Savills data showed that the absorption of industrial and warehousing spaces stood at 18.5 million sq ft in the first quarter of this year from 16 million sq ft in the year-ago period.

Eight tier-I cities accounted for 79 per cent of this absorption, while 16 tier-II and tier-III cities contributed 21 per cent.

Tier- I cities are Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Delhi-NCR, and Pune.


Tier- II and Tier-III cities include Guwahati, Bhubaneshwar, Patna, Hosur, Coimbatore, Rajpura, Lucknow, Jaipur, Nagpur, Surat, Indore, Kochi, Hubli, Vizag, Belgaum and Anantapur.

The manufacturing segment has continued to be the strongest demand driver, accounting for 6.5 million sq ft (35 per cent) of total leasing in January-March 2026.

This is followed by sustained demand from the 3PL segment with a 23 per cent overall contribution, while the FMCG and FMCD segments contributed 14 per cent. The e-commerce segment is gaining traction, with a contribution to overall absorption at 11 per cent, followed by the retail segment at 4 per cent.

Savills said the new supply rose 39 per cent to 22.1 million sq ft in Q1 2026.

Tier-I cities contributed a substantial 18.6 million sq ft (84 per cent), and Tier-II and Tier-III cities added 3.4 million sq ft (16 per cent).