Mumbai warehousing absorption spikes 459% YoY in Q2 2026

Mumbai led India's warehousing and logistics sector absorption in the second quarter of 2026, registering a 459 percent year‑on‑year increase and taking in 5.04 million square feet of space. The surge, driven by concentrated leasing activity in the Bhiwandi corridor, helped the city and Pune together account for 65 percent of national absorption, up from 33 percent a year earlier.

Across the top seven Indian cities, total absorption reached 10.56 million square feet in Q2 2026, pushing the first‑half total to 22.0 million square feet – the highest first‑half leasing volume in a year, up 16 percent YoY and 11 percent versus the second half of 2025 despite global headwinds. Third‑party logistics (3PL) providers were the dominant occupiers, responsible for 41 percent of the leased space, with consumer goods & services and engineering & manufacturing together contributing another 23 percent. Energy, automotive and chemicals sectors made up 22 percent of activity, and institutional investors placed USD 27 million in the market during the quarter. Vestian CEO Shrinivas Rao said the sector is undergoing a structural transformation, with sustainability emerging as a key focus.