1 month ago
India's Warehousing Sector Sees 53% Rise in Institutional Investment
India’s warehousing market is growing fast.
In the first half of 2026, big investors put $49 million into warehouses, a 53% jump from the year before.
Companies are renting more space—about 22 million square feet—especially in cities like Mumbai and Delhi.
The growth is driven by logistics companies, consumer goods makers, and factories.
Even though the sector is growing, it still makes up only 1% of all institutional real‑estate money, showing investors are still careful.
Green, high‑quality warehouses are becoming very popular because they help companies meet environmental goals.
The government’s support and new infrastructure projects are helping the market keep expanding.
Institutional investments in warehousing and industrial real estate rose 53% to $49 million in H1 2026.
Leasing of warehousing and industrial space grew 16% annually to 22 million sq ft across seven major Indian cities.
Demand is driven by third‑party logistics, consumer goods & services, and engineering & manufacturing sectors.
The sector still accounts for only 1% of total institutional investments, indicating a cautious environment.
Sustainability and Grade‑A green warehouses are becoming key differentiators, supported by government policies and infrastructure upgrades.
- Who
- Institutional investors and real‑estate consultant Vestian
- What
- Rise in institutional investment and leasing activity in Indian warehousing
- Where
- India, across seven major cities
- When
- January–June 2026
- Why
- Demand from logistics, consumer goods, manufacturing, and sustainability initiatives
Key facts
- Institutional investment (H1 2026)
- $49 million
- Leasing growth (H1 2026)
- 16% to 22 million sq ft
- Cities covered
- Mumbai, Delhi-NCR, Chennai, Kolkata, Pune, Hyderabad, Bengaluru
- Sector share of total institutional investment
- 1%
- Sustainability focus
- Grade‑A green warehouses
Quotes
Shrinivas Rao
CEO of Vestian, a US‑based real estate consulting firm
“India's warehousing sector is undergoing a structural transformation, evolving beyond traditional priorities such as supply chain optimisation, operational efficiency, and proximity to demand centres. Backed by supportive government policies and sustained infrastructure development, this transition is expected to accelerate further, reinforcing the sector's appeal to both global occupiers and long‑term institutional investors.”
thehansindia.com
Sources
Related news
Kolkata remains Eastern India's largest industrial and logistics market hub
Quick-commerce and FMCG drive 66% rise in Delhi NCR warehousing
FMCG drives Kolkata warehousing growth in first half of 2026
India accounts for over 40% of APAC's real estate investments
Mumbai, Delhi-NCR, Bengaluru Lead APAC Logistics Rental Growth
Developers Shelve IPOs as Housing Demand Cools
Top 10 coworking operators dominate India's flexible workspace market
