A fresh report has spotlighted a promising rebound in India’s warehousing sector, with demand in top cities surging 8 percent from the previous quarter in the first three months of 2026. This ongoing streak of four straight quarters of increases points to a market regaining its footing after recent challenges.
Workplace solutions leader Westin attributes this revival to brighter consumer outlooks, strong local demand, and infrastructure upgrades. Their analysis forecasts a sturdy performance for the full year, supported by these dynamics.
‘Quarterly demand growth indicates a strong market backed by rising manufacturing, infrastructure development, and healthy domestic consumption,’ noted Westin CEO Srinivas Rao, FRICS. While annual figures show a 14 percent decline, leasing remains robust, thanks to contributions from 3PL operators, engineering manufacturers, and FMCG players.
The west coast shone brightest, as Mumbai and Pune together captured 81 percent of all leasing volume. This highlights their pivotal role as industrial powerhouses. The pattern of sequential recoveries implies 2025’s dip was a temporary adjustment phase, not a long-term downturn.
Mumbai topped the charts at 4.76 million sq ft (42% share), while Pune hit 4.46 million sq ft with explosive 162% QoQ and 42% YoY gains. Hyderabad’s demand reached 0.69 million sq ft (up 50% YoY), NCR stood at 0.73 million sq ft (down 57% YoY), followed by Chennai (0.59 mn), Bengaluru (0.17 mn), and Kolkata (0.1 mn).
Future growth is expected from heightened supply chain priorities, demand for premium Grade-A warehouses, and development in Tier-II hubs. As India pushes towards logistics efficiency, this sector is poised to play a starring role in economic progress.
