New Delhi, April 29: The demand for warehousing and logistics in India’s major cities increased by 8% during the January-March quarter of 2026. This marks the fourth consecutive quarter of growth in demand, as reported in a recent study released on Wednesday.
According to the report by workplace solutions firm Westian, the sector is expected to remain robust in 2026, supported by improved consumer sentiment, strong domestic demand, and infrastructure upgrades.
Westian’s CEO, Srinivas Rao, FRICS, stated, “The quarter-on-quarter increase in demand reflects a strong market, bolstered by rising manufacturing activity, infrastructure development, and robust domestic consumption.”
However, there was a 14% decline in demand on a year-on-year basis. Leasing activities remain strong, supported by third-party logistics, engineering and manufacturing, and consumer goods companies.
Mumbai and Pune together accounted for 81% of total leasing activity, highlighting the continued dominance of established western industrial and logistics hubs in driving demand. The ongoing recovery on a quarterly basis suggests that the downturn observed in 2025 was a phase of strategic rebalancing rather than a structural decline in demand.
Mumbai recorded the highest demand for warehousing at 4.76 million square feet, representing 42% of total leasing, while Pune saw demand at 4.46 million square feet, reflecting a 162% increase quarter-on-quarter and a 42% increase year-on-year.
Hyderabad’s warehousing demand stood at 0.69 million square feet, marking a 50% year-on-year increase. The National Capital Region (NCR) recorded a demand of 0.73 million square feet, experiencing a 57% year-on-year softening.
Demand in Chennai, Bengaluru, and Kolkata was recorded at 0.59 million square feet, 0.17 million square feet, and 0.1 million square feet, respectively.
The report indicates that the increasing emphasis on supply chain resilience, the growing demand for modern Grade-A facilities, and the continuous expansion of emerging Tier-I and Tier-II logistics hubs are expected to accelerate the next phase of growth in 2026.
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My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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