Market Report
The Connect Q2 2026
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Key Insights
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6 Mn sq ft of absorption
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Mumbai dominated absorption with 48% share
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3PL companies led leasing with 41% share
Key Takeaways
- Warehousing and logistics sector recorded an absorption of 10.6 Mn sq ft in Q2 2026. Although absorption declined by 7% compared to the previous quarter, it increased by 89% annually.
- Mumbai and Pune together accounted for 65% of the pan-India absorption, reaffirming western India's dominance. Strong leasing activity in Bhiwandi continued to support Mumbai's market leadership.
- Leasing activity strengthened across Bengaluru, NCR, Chennai, and Kolkata, reflecting broader market recovery. Demand remained primarily driven by 3PL, Consumer Goods & Services, and Engineering & Manufacturing sectors.
- Institutional investments stood at USD 27 Mn in Q2 2026, accounting for 1% of the total real estate investments. However, sustained occupier demand, coupled with ongoing infrastructure development and manufacturing expansion, is expected to strengthen investor interest in the sector.
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