New Delhi: India’s three major southern cities, Bengaluru, Chennai and Hyderabad, saw a 58 per cent increase in leasing of industrial and warehousing spaces during the January-March period on better demand, according to Colliers.
Real estate consultant Colliers India data showed that the leasing of industrial and warehousing spaces in these three cities stood at 4.9 million sq ft in January-March this year from 3.1 million sq ft in the year-ago period.
Third-party logistics firms, e-commerce entities and light manufacturing companies are major demand drivers.
As per the data, the leasing of industrial and warehousing spaces in Bengaluru more than doubled to 1.7 million square feet from 0.8 million square feet.
In Chennai, the leasing activities grew 15 per cent to 2.3 million square feet from 2 million sq ft and jumped threefold in Hyderabad to 0.9 million square feet from 0.3 million sq ft.
Colliers India said leasing grew 22 per cent to 11 million sq ft in January-March across eight major cities from 9 million sq ft in the corresponding period of the preceding year.
Delhi-NCR and Pune saw flat leasing activity at 3.1 million sq ft and 0.7 million sq ft, respectively. Leasing grew 10 per cent in Mumbai to 1.1 million sq ft.
Kolkata witnessed a 40 per cent increase in leasing to 0.7 million square feet from 0.5 million square feet.
However, leasing activity in Ahmedabad fell 17 per cent to 0.5 million sq ft in January-March 2026, from 0.6 million sq ft in the year-ago period.
Data pertains to Grade A buildings. Absorption does not include lease renewals, pre-commitments and deals where only a Letter of Intent has been signed.
Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India, said, “Although long-term fundamentals of India’s industrial & warehousing market remain intact, developers are likely to adopt a measured approach with respect to supply additions in the near term amid prevailing geopolitical crisis and supply chain disruptions.”
Nevertheless, he said the policy support to enhance domestic manufacturing and logistics capabilities will remain pivotal in navigating potential downside risks.
