<p data-path-to-node="4"><b data-path-to-node="4" data-index-in-node="0">NEW DELHI</b> — India’s industrial and logistics real estate sector has reached a historic high in the first half of 2026, recording gross leasing absorption of 36.2 million square feet (MSF) across primary Tier-1 industrial cities. This record throughput represents a robust 18% year-on-year expansion compared to H1 2025, underscoring the deep structural resilience and rapid institutionalization of the nation's warehousing and supply chain ecosystem.</p><h3 data-path-to-node="5"><b>Third-Party Logistics and Automotive Sectors Drive Demand</b></h3><p data-path-to-node="6">Third-party logistics (3PL) providers maintained their position as the dominant space occupier, accounting for approximately 41% of total space leased nationwide. This surge is largely driven by domestic and multinational manufacturing firms outsourcing complex supply chain management, inventory staging, and omnichannel fulfillment to integrated 3PL operators.</p><p data-path-to-node="7">Concurrently, the engineering and automotive sectors experienced substantial leasing expansion, accelerated by the rapid scaling of domestic electric vehicle (EV) supply chains, battery pack assembly facilities, and automotive component manufacturing clusters. Market throughput was led by key industrial corridors in Delhi NCR, Chennai, Pune, and Bengaluru, which together accounted for over 60% of total national leasing activity.</p><h3 data-path-to-node="8"><b>Flight to Compliance and Grade-A Facilities</b></h3><p data-path-to-node="9">Institutional investors and logistics developers are responding to evolving occupier demands by accelerating the delivery of modern, high-spec Grade-A fulfillment centers. Grade-A assets captured nearly 78% of total leasing absorption in H1 2026, illustrating a decisive "flight to quality" as occupiers prioritize operational compliance, safety standards, and ESG metrics.</p><p data-path-to-node="10">Modern parks equipped with high clear-height ceilings, automated sorting systems, rooftop solar integration, and real-time inventory tracking continue to command rental premiums and record swift absorption rates across major consumption zones.</p><h3 data-path-to-node="11"><b>Macroeconomic Outlook and Tier-2 Expansion</b></h3><p data-path-to-node="12">Industry experts project that demand for industrial and warehousing space will remain elevated throughout the second half of 2026, supported by state-led infrastructure programs including the PM Gati Shakti National Master Plan and Dedicated Freight Corridors (DFCs). As intermodal rail-road connections mature between maritime gateways and inland container depots, institutional developers are expanding land banks into emerging Tier-2 hubs such as Guwahati, Hosur, Coimbatore, and Lucknow to build regional feeder logistics networks.</p>