Delhi NCR emerges as the largest logistics and industrial market

Delhi NCR has emerged as the largest logistics and industrial market during H1 2026, recording 8.7 MSF of leasing activity and capturing 24% of overall demand.

The market registered 69% YoY growth, the highest among the major markets.

According to Cushman & Wakefield, gross leasing volume across the top eight cities reached 36.2 million square feet (MSF), the highest-ever leasing volume recorded in the first half of a calendar year.


“India's logistics and industrial sector has built on the strong momentum of 2025 to deliver a record first half in 2026, reinforcing the structural strength of occupier demand. Leasing activity continued to be driven by 3PL players, manufacturing expansion and sustained investments across supply chains and industrial infrastructure,” said Abhishek Bhutani, Managing Director, Logistics & Industrial Services, Cushman & Wakefield.

Leasing activity grew 18% year-on-year (YoY) and was 2% higher than H2 2025, underscoring the sector’s resilience amid an evolving global business environment.

Warehouse leasing continued to dominate the market, accounting for 24.3 MSF of leasing volume and 67% of total absorption during H1 2026. The segment recorded 11% YoY growth, although activity moderated marginally by 6% compared to H2 2025. Meanwhile, industrial leasing reached nearly 12 MSF during H1 2026, up 36% YoY and 27% higher than H2 2025, highlighting the increasing role of manufacturing-led expansion in shaping India’s logistics and industrial real estate market.

“Despite an external environment marked by geopolitical tensions and trade-related uncertainties, occupier demand has remained resilient. While businesses have adopted a more measured approach to decision-making in recent months, expansion plans remain firmly on track, reflecting long-term confidence in India's manufacturing and consumption story,” Bhutani said.

3PL occupiers continued to drive leasing momentum in H1 2026, accounting for 12.2 MSF of absorption and a 34% share of overall demand, while registering a robust 64% YoY growth. Engineering & Manufacturing (E&M) firms followed closely, leasing 10.2 MSF of space, contributing 28% of total absorption and recording a 6% YoY increase. Together, 3PL and E&M occupiers accounted for more than 60% of overall leasing activity, underscoring the continued strength of India's manufacturing and supply chain ecosystem.

The automobile sector emerged as one of the key growth driversduring H1 2026, accounting for 4.8 MSF of leasing volume and 13% of overall demand. Leasing by automobile occupiers nearly doubled compared to H1 2025. The growth was primarily led by industrial facilities, which accounted for nearly 63% of the sector's leasing activity, supported by accelerated investments across the electric vehicle (EV) value chain. The strong leasing momentum also mirrors the healthy performance of India's automotive sector, with robust passenger vehicle sales in H1 2026 underscoring continued manufacturing and supply chain expansion.

“We expect leasing momentum to be supported by seasonal demand from the e-commerce, retail and automotive sectors in the second half of the year. At the same time, global developments will continue to influence the pace of decision-making, although India's long-term fundamentals remain well positioned to support sustained growth in the sector,” Bhutani said.