Warehousing investments jump 53% in H1; leasing rises 16%: Vestian
Institutional investments in Indian warehousing rose 53 percent to USD 49 million. Leasing of industrial space increased 16 percent across seven major cities. Demand was primarily driven by logistics and consumer goods sectors. This growth refl...
By PTI |
New Delhi: Institutional Investments in warehousing and industrial segment of Indian real estate rose 53 per cent in January-June to USD 49 million, according to Vestian.
US-based real estate consultant Vestian on Tuesday said in a statement that the leasing of warehousing and industrial space rose 16 per cent annually to 22 million sq ft in the first half of 2026 across seven major cities -- Mumbai, Delhi-NCR, Chennai, Kolkata, Pune, Hyderabad and Bengaluru.
The consultant stated that the leasing activity remained resilient during the first half of 2026, indicating healthy occupier demand.
The demand was primarily driven by 3PL (third-party logistics), consumer goods & services; and engineering and manufacturing sectors, it added. Leasing activity increased on the back of sustained manufacturing expansion, robust domestic consumption and ongoing infrastructure upgrades.
Institutional investments in warehousing reached USD 49 million during the first half of this year, up from USD 32 million in the year-ago period.
Despite the increase, Vestian pointed out that the sector continued to account for just 1 per cent of the total institutional investments during H1 2026. This reflects a cautious investment environment.
Shrinivas Rao, CEO of Vestian, said, "India's warehousing sector is undergoing a structural transformation, evolving beyond traditional priorities such as supply chain optimisation, operational efficiency, and proximity to demand centres."
He noted that sustainability has emerged as a key differentiator, with occupiers increasingly seeking Grade-A green warehouses that align with their ESG commitments and long-term business objectives.
"Backed by supportive government policies and sustained infrastructure development, this transition is expected to accelerate further, reinforcing the sector's appeal to both global occupiers and long-term institutional investors," Rao said.
On the outlook, Vestian expects both leasing activities and institutional investments to rise in the second half of this year.
US-based real estate consultant Vestian on Tuesday said in a statement that the leasing of warehousing and industrial space rose 16 per cent annually to 22 million sq ft in the first half of 2026 across seven major cities -- Mumbai, Delhi-NCR, Chennai, Kolkata, Pune, Hyderabad and Bengaluru.
The consultant stated that the leasing activity remained resilient during the first half of 2026, indicating healthy occupier demand.
The demand was primarily driven by 3PL (third-party logistics), consumer goods & services; and engineering and manufacturing sectors, it added. Leasing activity increased on the back of sustained manufacturing expansion, robust domestic consumption and ongoing infrastructure upgrades.
Institutional investments in warehousing reached USD 49 million during the first half of this year, up from USD 32 million in the year-ago period.
Despite the increase, Vestian pointed out that the sector continued to account for just 1 per cent of the total institutional investments during H1 2026. This reflects a cautious investment environment.
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Shrinivas Rao, CEO of Vestian, said, "India's warehousing sector is undergoing a structural transformation, evolving beyond traditional priorities such as supply chain optimisation, operational efficiency, and proximity to demand centres."
He noted that sustainability has emerged as a key differentiator, with occupiers increasingly seeking Grade-A green warehouses that align with their ESG commitments and long-term business objectives.
"Backed by supportive government policies and sustained infrastructure development, this transition is expected to accelerate further, reinforcing the sector's appeal to both global occupiers and long-term institutional investors," Rao said.
On the outlook, Vestian expects both leasing activities and institutional investments to rise in the second half of this year.
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