Mumbai, June 8 (IANS) India’s industrial and warehousing real estate market recorded gross absorption of 18.3 million square feet in the first quarter of 2026, with manufacturing accounting for 28 per cent of total activity, a report said on Monday.

The sector maintained strong momentum in the first quarter (January-March), with total cumulative stock reaching 514 million sq ft across eight major cities, according to data released by JLL.

The market is firmly positioned to reach approximately 850 million sq ft by 2030, representing a CAGR increase of 11.4 per cent from current levels and underscoring India’s expanding role as a global manufacturing and logistics hub.

“India’s industrial and warehousing market continues to evolve with increasing concentration of Grade A space, which grew 20 per cent YoY to reach 293 million sq ft, now representing 57 per cent of the total market stock,” said Yogesh Shevade, Managing Director, Head of Industrial and Logistics, India, JLL.

Manufacturing activity contributed 5.1 million sq ft of gross absorption in Q1 2026, building on 2025’s robust performance when the sector leased 19.3 million sq ft, representing 26 per cent of the year’s total gross absorption of 73.7 million sq ft.

Engineering dominated manufacturing transactions with a 47 per cent share. The auto and ancillaries segment accounted for 32 per cent of manufacturing activity.

Warehousing activity captured 72 per cent of Q1 2026’s gross absorption at 13.2 million sq ft. The demand is majorly driven by third-party logistics sector accounting for the highest share of absorption, followed by consumption-led sectors including E-Commerce, FMCG, FMCD and Retail, said the report.

India’s industrial real estate market witnessed strong momentum in the first quarter of 2026, with Mumbai and Pune commanding a dominant 43 per cent share of total absorption.

Delhi-NCR captured 20 per cent of absorption, maintaining its position as a critical northern gateway, while Bengaluru and Chennai accounted for 13 per cent and 12 per cent, respectively.

—IANS

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