India warehousing leasing rises 12 pc in Q3 2026: Report
Mumbai, Nov 5
India's warehousing sector regained momentum in the July-September quarter of 2026, with leasing activity across the country's eight major markets rising 12 per cent year-on-year to 19.1 million square feet, led by robust demand from manufacturing companies and third-party logistics operators, a report said on Thursday.
The recovery comes after a softer second quarter and was supported by higher manufacturing activity, expanding outsourced logistics operations and inventory build-up ahead of the festive season, according to a report by Knight Frank India.
The report noted that the sector's growth remained resilient despite geopolitical uncertainties and elevated oil and freight costs.
Manufacturing and 3PL occupiers together accounted for 76 per cent of total warehousing demand during the quarter, as per the report.
Manufacturing leasing grew 11 per cent year-on-year, driven by demand from automotive, engineering, consumer durables and electrical equipment companies, while leasing by 3PL operators surged 27 per cent as businesses increasingly outsourced warehousing and distribution operations to gain greater flexibility amid volatile operating costs.
Consumer-focused sectors also expanded their warehousing footprint ahead of the festive season.
Leasing by e-commerce firms rose 5 per cent year-on-year, while FMCG and FMCD occupiers recorded sharp increases of 101 per cent and 43 per cent, respectively.
Shishir Baijal, International Partner, Chairman and Managing Director of Knight Frank India, said the warehousing market is being reshaped by the twin drivers of manufacturing expansion and the growing role of specialised logistics providers.
"India's warehousing market is being shaped by two important shifts, the expansion of domestic manufacturing and the growing role of specialised logistics providers. The next phase of growth will depend not just on leasing volumes, but also on the availability of quality facilities in locations that serve manufacturing and consumption centres," he stated.
"Access to suitable land, timely approvals and investment in modern infrastructure will be critical to building a warehousing ecosystem that can support India's evolving supply chains," Baijal noted.
— IANS
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