In a promising sign for India’s logistics sector, warehousing demand in top cities climbed 8% quarter-on-quarter in the first quarter of 2026. This streak of four straight quarters of expansion points to underlying market strength, as detailed in Vestian’s latest analysis released on Wednesday.
Strong consumer confidence, steady domestic demand, and infrastructure upgrades are key pillars supporting expectations of a solid year ahead. ‘The consistent quarterly growth highlights a market fortified by expanding manufacturing, infrastructure progress, and vigorous household spending,’ noted Vestian CEO Srinivas Rao, FRICS.
Year-over-year, demand fell 14%, but robust leasing—led by 3PL operators, engineering/manufacturing sectors, and FMCG players—kept momentum alive. The spotlight fell on western powerhouses: Mumbai and Pune together captured 81% of leasing activity.
Mumbai topped charts at 4.76 million sq ft (42% share), while Pune surged to 4.46 million sq ft with 162% QoQ and 42% YoY jumps. Hyderabad’s demand hit 0.69 million sq ft (up 50% YoY), NCR managed 0.73 million sq ft (down 57% YoY), and Chennai, Bengaluru, Kolkata lagged at 0.59, 0.17, and 0.1 million sq ft respectively.
Looking forward, the sector is set for its next growth wave, driven by supply chain fortification, appetite for premium Grade-A warehouses, and development in up-and-coming logistics nodes across Tier-I and II cities. The ongoing quarterly rebound suggests 2025’s dip was a temporary strategic pause, not a permanent shift.
