New Delhi, April 1 India’s industrial and warehousing sector recorded absorption of 18.5 million square feet in Q1 2026, marking a robust growth of 15.6 per cent year‑on‑year, a report said on Wednesday.
The report from Savills India said that growth was led by the manufacturing segment, while Pune made a notable leap to become the second-largest contributor to overall absorption.
Manufacturing accounted for 35 per cent of absorption (about 6.5 million square feet), up from 30 per cent in Q1 2025. Third-party logistics (3PL) segment followed with a 23 per cent overall contribution, while the FMCG and FMCD segment contributed 14 per cent.
Grade‑A space gained prominence with its share of absorption rising to 60 per cent from 51 per cent in Q1 2025 reflecting occupiers' growing emphasis on quality, compliance, and ESG standards, the report noted.
Tier‑I cities accounted for 79 per cent of absorption. Tier-II and Tier-III cities also maintained a meaningful presence, contributing 21 per cent of overall absorption and 16 per cent of overall supply during the quarter.
Pune contributed to 4.5 million square feet or 24 per cent of total absorption. Delhi-NCR and Mumbai followed with 19 per cent and 12 per cent, respectively.
India’s industrial and logistics real estate sector remains strong and resilient, even amid ongoing uncertainty in West Asia.
With occupiers diversifying supply chains and absorption on the rise, total absorption is set to surpass 75 million square feet by 2026, the report forecasted.
On the supply front, the sector delivered 22.1 million square feet in Q1 2026, up 39 per cent YoY, with Tier‑I cities supplying 18.6 million square feet (84 per cent). Tier‑II and Tier‑III cities added 3.4 million square feet or 16 per cent of total supply.
Delhi-NCR accounted for the highest contribution of 20 per cent in Q1 2026, followed by Pune at 18 per cent and Chennai at 17 per cent, while the Tier-II & III cities together accounted for 16 per cent of the total supply.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor