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Business & Stocks Economic Times Markets • Oct 10, 2026

Industrial and Warehousing Space Leasing Hits Record 59.1 Million Sq Ft Across Top 24 Indian Cities in Jan-Sep: Savills Report

💡 Key Takeaways

•Industrial and warehousing leasing hit 59.1 million sq ft across 24 cities in Jan-Sep.
•Tier-I metropolitan markets accounted for 47.2 million sq ft of total leasing absorption.
•Fresh supply touched 68.9 million sq ft, driven by e-commerce, 3PL, and light manufacturing.

NEW DELHI [NCRBuzz Wire] — **Industrial and warehousing space leasing across India's top 24 cities touched an unprecedented 59.1 million sq ft between January and September, fueled by aggressive supply chain expansion.** Market analysts attribute this structural surge to rapid consumption shifts, enhanced e-commerce penetration, and institutional investments aimed at optimizing logistics networks nationwide.

### Tier-I Dominance and Fresh Supply Inflows

**Tier-I cities commanded the lion's share of absorption, accounting for 47.2 million sq ft of the total transaction volume during the nine-month period.** Concurrently, fresh institutional supply outpaced previous quarters, registering 68.9 million sq ft of newly completed warehousing and industrial stock to meet escalating corporate requirements.

### Key Real Estate Performance Metrics

| Metric / Aspect | Details |

|---|---|

| Total Cities Covered | 24 Major Urban Centers |

| Jan-Sep Leasing Volume | 59.1 Million Sq Ft |

| Tier-I Absorption Share | 47.2 Million Sq Ft |

| Fresh Supply Inflow | 68.9 Million Sq Ft |

| Primary Growth Sectors | E-Commerce, 3PL, Light Manufacturing |

### Sectoral Drivers and Outlook

**Third-party logistics (3PL), rapid-delivery e-commerce platforms, and light manufacturing industries emerged as the primary growth engines for industrial real estate absorption.** Industry stakeholders indicate that tightening supply chains and consumer preference for localized fulfillment centers will likely sustain high absorption velocity through the remainder of the fiscal year.

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🏛️ Background Context

The Indian industrial and warehousing sector has undergone a structural transformation over recent years, shifting from unorganized regional godowns to institutional-grade logistics parks compliant with global standards, accelerated by GST implementation and booming e-commerce supply chains.

💡 Citizen & Commuter Quick Explainer (FAQ)

Q1: What is the total industrial and warehousing space leased in India between January and September?

Total leasing volume across the top 24 Indian cities reached a historic 59.1 million sq ft during the first nine months of the calendar year.

Q2: Which regions and sectors drove the highest absorption of warehousing space?

Tier-I cities drove the bulk of the demand with 47.2 million sq ft of absorption, primarily fueled by e-commerce, third-party logistics (3PL), and light manufacturing sectors.

Q3: How much fresh institutional supply entered the market during this period?

Fresh supply across the tracked urban centers increased to 68.9 million sq ft to match expanding corporate and supply chain requirements.

Verified Wires: Economic Times Markets, Savills India Market Research Original Wire Dispatch ↗

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