<p data-path-to-node="6"><b data-path-to-node="6" data-index-in-node="0">BENGALURU / NEW DELHI</b> — India’s industrial and logistics real estate sector is on track to deliver between 45 and 50 million square feet of Grade A warehousing and industrial space by the close of 2026, according to real estate intelligence reports.</p><p data-path-to-node="7">Driven by a combination of national infrastructure mandates, expanding domestic manufacturing, and sustained capital deployment by global private equity platforms, the market is experiencing an unprecedented phase of high-spec logistics development.</p><h3 data-path-to-node="9"><b data-path-to-node="9" data-index-in-node="0">H1 2026 Performance Metrics: Leasing &amp; Geographic Concentration</b></h3><p data-path-to-node="10">The market’s momentum was clearly demonstrated during the first half (H1) of 2026, with gross leasing across India’s top eight primary markets climbing <b data-path-to-node="10" data-index-in-node="152">12% year-on-year to reach nearly 22 million square feet</b>.</p><p data-path-to-node="11">Key operational insights from H1 performance tracking include:</p><ul data-path-to-node="12"><li><p data-path-to-node="12,0,0"><b data-path-to-node="12,0,0" data-index-in-node="0">Market Drivers:</b> Third-Party Logistics (3PL) operators remained the largest demand driver, capturing <b data-path-to-node="12,0,0" data-index-in-node="100">30% of total leased space</b>, followed by engineering and heavy manufacturing (21%), and e-commerce platforms (16%). The consumer electronics and semiconductor assembly segment recorded a near two-fold annual spike in warehouse absorption.</p></li><li><p data-path-to-node="12,1,0"><b data-path-to-node="12,1,0" data-index-in-node="0">Geographic Hubs:</b> Delhi-NCR and Chennai led regional absorption, accounting for over <b data-path-to-node="12,1,0" data-index-in-node="84">45% of total national demand</b>. Meanwhile, Western corridors across Mumbai and Pune, alongside Tier-2 manufacturing hubs like Ahmedabad and Coimbatore, recorded double-digit growth in institutional space uptake.</p></li><li><p data-path-to-node="12,2,0"><b data-path-to-node="12,2,0" data-index-in-node="0">Supply Surge:</b> New project completions during H1 2026 rose 27% year-on-year to approximately 25 million square feet, slightly outpacing net absorption and bringing overall national vacancy levels to 17.2%.</p></li></ul><h3 data-path-to-node="14"><b data-path-to-node="14" data-index-in-node="0">Shift Toward High-Tech, ESG-Compliant Facilities</b></h3><p data-path-to-node="15">The surge toward Grade A supply reflects a fundamental shift in occupier preferences. Global and domestic enterprises are increasingly moving away from legacy Grade B/C facilities in favor of modern, ESG-certified logistics parks equipped with 10-to-12-meter clear ceiling heights, high-floor-load capacities, automated material handling systems, and rooftop solar arrays.</p><p data-path-to-node="16">Commenting on the industry outlook, <b data-path-to-node="16" data-index-in-node="36">Vimal Nadar, National Director and Head of Research at Colliers India</b>, noted:</p><blockquote data-path-to-node="17"><p data-path-to-node="17,0"><i data-path-to-node="17,0" data-index-in-node="0">"Developers and global institutional platforms remain overwhelmingly confident about India’s long-term industrial fundamentals. Supported by infrastructure-led policy initiatives like PM Gati Shakti and Production Linked Incentive (PLI) schemes, the robust construction pipeline is fully aligned to deliver 45 to 50 million square feet of Grade A logistics real estate by the end of 2026."</i></p></blockquote><h3 data-path-to-node="19"><b data-path-to-node="19" data-index-in-node="0">Strategic Outlook &amp; Market Resilience</b></h3><p data-path-to-node="20">Despite minor headwinds in second-quarter leasing due to global shipping reroutings and West Asian transit volatility, analysts project strong demand recovery through the second half of 2026. As multi-modal logistics parks (MMLPs) come online near major Dedicated Freight Corridor nodes, institutional investors are positioning high-capacity fulfillment hubs to serve both domestic consumption markets and export-oriented industrial corridors.</p>