Chennai, Nov 6:
Industrial and warehousing transactions across India’s top eight primary markets expanded by 12% year-on-year to 19.1 million sq ft (1.78 mn sq m) in Q3 2026, driven by sustained domestic manufacturing output and festive inventory buildup, according to Knight Frank India’s latest market report.
Year-to-date (YTD) leasing reached 55.9 million sq ft across the first nine months, marking a 14% annual growth. Manufacturing and third-party logistics (3PL) operators dominated activity, accounting for 76% of total quarterly take-up. While traditional automotive hubs like Chennai and Pune saw manufacturing demand broaden into engineering and durables, Chennai witnessed a steady revival, logging 2.7 million sq ft in Q3 and capturing 22% of national manufacturing leasing.
Weighted average rentals rose 3% to 5% across major hubs, with overall stock standing at 597.7 million sq ft and vacancy holding at 11.5%. The report observed that while regional West Asian geopolitical disruptions and elevated shipping rates exerted cost pressures, trade policy stability and long-term supply chain outsourcing continue to anchor industrial absorption.