India’s logistics and industrial real estate sector maintained its growth momentum in the first half of 2026, supported by robust occupancy demand across the logistics, manufacturing and automotive sectors. According to Cushman & Wakefield’s H1 2026 Logistics & Industrial MarketBeat report, gross leasing volume across the top eight cities reached 36.2 million sq ft (MSF), the highest ever in the first half of a calendar year.Leasing activity grew 18 per cent year-on-year (y-o-y) and was 2 per cent higher than in H2 2025, underscoring the sector’s resilience amid an evolving global business environment.Warehouse leasing continued to dominate the market, accounting for 24.3 MSF of leasing volume and 67 per cent of total absorption. The segment recorded 11 per cent y-o-y growth, although activity moderated marginally by 6 per cent compared to H2 2025.Industrial leasing reached nearly 12 MSF, up 36 per cent y-o-y and 27 per cent higher than in H2 2025, highlighting the rising role of manufacturing-led expansion in India’s logistics and industrial real estate market, says the report.Sectoral trendsTogether, third-party logistics and engineering and manufacturing accounted for more than 60 per cent of overall leasing activity, underscoring the enduring strength of India’s manufacturing and supply chain ecosystem.The automobile sector emerged as a key growth driver, accounting for 4.8 MSF of leasing volume and 13 per cent of overall demand.Leasing by automobile players nearly doubled compared to H1 2025, with industrial facilities accounting for nearly 63 per cent, supported by accelerated investments across the electric vehicle (EV) value chain, the report said.Among cities, Delhi NCR emerged as the largest logistics and industrial market, followed by Chennai and Pune.Abhishek Bhutani, Managing Director, Logistics and Industrial Services, Cushman & Wakefield, said, “India’s logistics and industrial sector has built on the strong momentum of 2025 to deliver a record first half in 2026, reinforcing the structural strength of occupier demand.”Published on August 10, 2026