New Delhi, April 29 (IANS) India’s top seven cities recorded warehousing and logistics absorption of 11.4 million square feet in Q1 2026, posting a 8 per cent quarter‑on‑quarter increase and the fourth consecutive quarter of sequential growth, a report said on Wednesday.

The report from workplace solutions firm Vestian said the warehousing and logistics sector entered 2026 on a stronger footing, supported by improved occupier sentiment, resilient domestic demand and ongoing infrastructure upgrades.

“Sequential growth in absorption reflects strong underlying market fundamentals, supported by rising manufacturing activity, infrastructure development, and resilient domestic consumption,” said Shrinivas Rao, FRICS, CEO, Vestian.

While absorption was down 14 per cent year‑on‑year, leasing activity remained robust, led by third‑party logistics, engineering and manufacturing, and consumer goods occupiers.

The warehousing and logistics sector is expected to post annual absorption exceeding 45 million sq ft by the end of 2026, reflecting sustained demand in the sector.

Mumbai and Pune together contributed 81 per cent of the total leasing activity, underscoring the continued dominance of established western industrial and logistics hubs in driving demand. The sustained quarterly recovery indicated that the moderation witnessed in 2025 was a phase of strategic recalibration rather than a structural slowdown in demand.

Mumbai recorded the highest absorption at 4.76 million square feet or 42 per cent of the pan-India absorption and Pune stood at 4.46 million square feet, up 162 per cent quarter‑on‑quarter and 42 per cent year‑on‑year.

Hyderabad recorded an absorption of 0.69 million square feet, up 50 per cent year‑on‑year.

The National Capital Region witnessed an absorption of 0.73 million square feet, which has moderated 57 per cent year‑on‑year.

Chennai, Bengaluru and Kolkata recorded 0.59 million, 0.17 million and 0.01 million square feet of absorption, respectively.

A growing emphasis on supply chain resilience, rising demand for modern Grade-A facilities, and continued expansion into emerging Tier-I and Tier-II logistics hubs are expected to drive the next phase of growth in 2026, the report forecasted.

Occupiers are likely to prioritise network efficiency, faster delivery capabilities, and technology-enabled warehousing solutions, creating fresh demand across strategic corridors, it noted.

—IANS

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