India's Industrial, Logistics Absorption Rises 14 Pc To 24.3 Million Sq Ft In Q3: Report

(MENAFN- IANS) New Delhi, Oct 9 (IANS) India's industrial and logistics sector absorption rose 14.1 per cent year-on-year to 24.3 million sq ft in Q3 2026, a report showed on Friday.

Tier-I cities continued to dominate, accounting for 19.9 million sq ft or 82 per cent of total absorption, while Tier-II and III cities contributed 4.4 million sq ft or 18 per cent, according to a report by Savills India.

Cumulative absorption in the first nine months of 2026 reached 59.1 million sq ft, up 6.9 per cent year-on-year, it added.

On supply front, fresh completions totalling 26.2 million sq ft were added in Q3 this yead, an increase of 21.3 per cent year-on-year.

Tier-I cities contributed bulk of supply at 19.2 million sq ft or 73 per cent share, while Tier-II and III markets added 6.9 million sq ft or 27 per cent.

In addition, Grade-A absorption rose to 66 per cent during the period from 52 per cent year-on-year, while Grade-A supply rose to 58 per cent from 50 per cent a year ago, driven by emphasis on quality infrastructure, compliance and ESG considerations, Savills said.

Sector-wise, manufacturing led absorption at 31 per cent in Q3 against 27 per cent a year ago, followed by 3PL at 26 per cent against 34 per cent and retail at 12 per cent against 5 per cent.

However, e-commerce share was stable at 10 per cent.

City-wise, Delhi-NCR remained leading market accounting for 20 per cent of total absorption, followed by Bengaluru 16 per cent, Mumbai 14 per cent and Pune 13 per cent. Tier-II and III cities together accounted for 18 per cent of absorption.

In terms of supply, Pune emerged as highest contributor at 18 per cent in Q3 2026, followed by Delhi-NCR and Mumbai each at 15 per cent, while Tier-II and III cities together accounted for 27 per cent.

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