New Delhi, Nov 3 (IANS) Driven by sustained occupier demand across industry segments, India’s warehousing and logistics sector recorded an absorption of 10.58 million square feet in Q3 2026, a report showed on Tuesday.
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, according to a Vestian report.
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.
The sector attracted institutional investments worth $332 million in Q3 2026. Investments accounted for 17 per cent of the total quarterly investments, the highest in any quarter over the past 2 years.
“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, Vestian.
Sustained occupier demand, infrastructure upgrades, and policy support continue to strengthen the sector’s long-term potential. Furthermore, investor sentiment remains strong as India’s expanding consumption base and manufacturing ecosystem create opportunities for modern and efficient warehousing, Rao mentioned.
Unlike the previous quarter, where 3PL accounted for 41 per cent share of the pan-India absorption, its share declined to 29 per cent in Q3, although it continued to lead leasing activity.
Engineering and manufacturing and automobiles and auto components sectors followed with 23 per cent and 14 per cent share, respectively.
Robust demand, consistent infrastructure upgrades, and government-led policy support in the sector continued to strengthen investor sentiment, said the report.
Registering a quarterly and annual growth of 320 per cent and 156 per cent, Chennai led leasing activity in India with an absorption of 2.89 million sq ft.
Mumbai ranked second, recording an absorption of 2.70 million sq ft. The growth momentum, however, declined by 46 per cent quarterly and 37 per cent annually.
Pune at third place recorded an absorption of 2.2 million sq ft, rising 245 per cent annually.
Looking ahead, sustained occupier demand across industry segments is expected to accelerate the uptake of modern, technology-enabled warehousing across established and emerging logistics hubs, said the report.
–IANS
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