11 Million Sq Ft Demand, 33% Supply Jump: India’s Warehousing Boom Led by 3PL Giants in Q1 2026

India’s warehousing sector grew strongly in Q1 2026 with 11 million sq ft demand, but a 33% surge in supply has pushed vacancy rates higher. 3PL companies continue to dominate, raising both opportunities and risks in the market.

Big-Ticket Deals Power India’s Warehousing Boom as Leasing Hits Multi-Year High in 2025

India’s industrial and warehousing market hit a multi-year high in 2025 as large-ticket deals accounted for nearly half of leasing activity, with Delhi NCR and Chennai emerging as the biggest demand drivers, according to Colliers India.

Industrial & Warehousing Sector Records Robust Growth in 2024, Driven by Large Deals and Strong Demand in Key Cities

India’s industrial and warehousing sector recorded significant growth in 2024, with 25.6 million sq ft of leasing activity across the top five cities. Delhi NCR and Chennai led the demand, accounting for nearly half of the market share. The sector saw a 22% YoY rise in new supply, reflecting developer confidence. Large-sized deals dominated, with 40% of the total demand driven by 3PL, Engineering, and Electronics segments.