Mumbai, Aug 28: India’s major logistics markets are witnessing strong demand for warehousing and industrial space, with Mumbai, Delhi-NCR and Bengaluru emerging as key locations for businesses expanding their supply-chain operations.

The growth is being supported by rising manufacturing activity, e-commerce, domestic consumption and the increasing need for faster and more efficient distribution networks. As companies look for strategically located and modern facilities, demand for quality logistics space has also pushed rents higher in several markets.

Logistics and industrial leasing across India’s leading cities reached 36.2 million square feet in the first half of 2026, marking an 18 per cent increase from the same period last year. Warehousing accounted for the larger share of activity, while industrial leasing also recorded strong growth.

Delhi-NCR recorded the highest leasing activity at 8.7 million square feet, accounting for around 24 per cent of the total. The region witnessed a sharp 69 per cent year-on-year increase, reflecting strong demand from businesses seeking large-scale distribution and industrial facilities.

Mumbai recorded 4.7 million square feet of leasing, while Bengaluru saw 4.4 million square feet of activity. Bengaluru's leasing increased by 33 per cent compared with the previous year, highlighting the city's expanding role in logistics, manufacturing and technology-linked supply chains.

Third-party logistics companies were the largest source of demand, accounting for 34 per cent of leasing. Engineering and manufacturing companies contributed 28 per cent, followed by automobiles at 13 per cent and e-commerce at 8 per cent.

The automobile sector is also becoming an important driver of demand. Leasing activity from automobile companies nearly doubled from the previous year, supported in part by growing investment across the electric-vehicle supply chain.

For businesses, the expansion of logistics infrastructure can improve distribution efficiency, reduce delivery times and help companies manage inventory and supply chains more effectively. However, rising rents could increase operating costs for businesses that depend heavily on warehousing and distribution facilities.

The increasing demand for modern logistics space is also creating opportunities for warehouse developers, logistics operators and commercial property investors. Locations with strong connectivity to highways, ports, airports, manufacturing centres and large consumer markets are likely to remain particularly attractive.

The continued expansion of India's logistics sector reflects the changing needs of businesses as manufacturing, organised retail, e-commerce and domestic consumption grow. With companies increasingly focused on building resilient supply chains, demand for well-connected logistics and industrial facilities is expected to remain an important part of India's business and real estate growth story.