{"id":3655,"date":"2026-07-08T12:28:00","date_gmt":"2026-07-08T06:58:00","guid":{"rendered":"https:\/\/www.crematrix.com\/blog\/?p=3655"},"modified":"2026-07-11T12:29:58","modified_gmt":"2026-07-11T06:59:58","slug":"indias-grade-a-warehousing-market-starts-cy26-on-a-strong-note-demand-outpaces-supply","status":"publish","type":"post","link":"https:\/\/www.crematrix.com\/blog\/indias-grade-a-warehousing-market-starts-cy26-on-a-strong-note-demand-outpaces-supply\/","title":{"rendered":"India’s Grade A Warehousing Market Starts CY’26 on a Strong Note: Demand Outpaces Supply"},"content":{"rendered":"\n

India’s Grade A warehousing market has entered CY’26 with strong momentum, reflecting sustained demand from occupiers and improving market fundamentals. According to the CRE Matrix Grade A India Warehousing Report Q1 CY’26<\/a>, leasing activity reached 16.9 million sq ft (msf) during the quarter. This surpasses the 13.8 msf of new supply, resulting in an absorption-to-supply ratio of 1.2x.<\/p>\n\n\n\n

This healthy demand has continued to reduce vacancy levels across India’s top warehousing markets. Vacancy declined to 8.0%, marking a 0.9% year-on-year improvement compared to Q1 CY’25. Meanwhile, India’s Grade A warehousing stock has reached 416.2 msf. These projections point to 450 msf by the end of CY’26. to 450 msf by the end of CY’26.<\/p>\n\n\n\n

One of the most encouraging trends this quarter is the early recovery in rental markets. After the record supply additions in 2025 pushed market rents below passing rents, Q1 CY’26 indicates that rentals are beginning to stabilise. The demand continues to exceed fresh supply. If this trend continues, landlords could regain pricing power over the coming quarters.<\/p>\n\n\n\n

Pune and Bengaluru Continue to Lead<\/strong><\/h2>\n\n\n\n

Pune and Bengaluru emerged as the strongest-performing warehousing markets in Q1 CY’26. Together, they accounted for 46% of the country’s leasing demand and 44% of new supply additions. Pune recorded the highest demand at 4.9 msf, followed by Bengaluru at 2.9 msf, while both cities also witnessed significant supply additions of 3.3 msf and 2.8 msf, respectively.
Across other major markets, MMR leased 2.7 msf, Chennai 2.3 msf, Delhi NCR 2.0 msf, while Hyderabad and Ahmedabad each recorded 0.9 msf of demand. These figures indicate healthy occupier activity across all major logistics hubs despite varying supply pipelines.<\/p>\n\n\n\n

Manufacturing, 3PL and Automotive Drive Demand<\/strong><\/h2>\n\n\n\n

Occupier demand remained diversified, with manufacturing (27%), third-party logistics (24%), and automotive (23%) emerging as the three largest contributors. Collectively, these sectors accounted for 74% of total warehousing demand during the quarter. This indicates India’s growing manufacturing ecosystem and expanding logistics infrastructure.<\/p>\n\n\n\n

Large warehouse transactions also reflected the market’s preference for modern Grade A facilities. Some of the notable deals included Whirlpool, Jabil Circuit, Delhivery, Amazon, BigBasket, Proconnect Supply Chain Solutions, and Onesto Labs. <\/p>\n\n\n\n

Outlook for CY’26<\/strong><\/h2>\n\n\n\n

The Q1 CY’26 data indicates that India’s Grade A warehousing sector remains fundamentally strong. Demand continues to outpace supply, vacancy is declining, and rental recovery has begun after the supply-heavy environment of 2025. India’s Grade A warehousing stock is projected to touch nearly 450 msf by the end of CY’26. This expanding inventory will play a crucial role in supporting manufacturing, strengthening supply chains, and meeting rising consumption demand.<\/p>\n\n\n\n

As occupiers increasingly prioritise high-quality logistics infrastructure, the warehousing sector is expected to remain one of India’s strongest-performing commercial real estate asset classes throughout CY’26.<\/p>\n\n\n\n

Elevate your decisions in real estate as a developer or broker with CRE Matrix\u2019s data-driven insights. Book a demo now<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

India’s Grade A warehousing market has entered CY’26 with strong momentum, reflecting sustained demand from occupiers and improving market fundamentals. According to the CRE Matrix Grade A India Warehousing Report…<\/p>\n","protected":false},"author":1,"featured_media":3660,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[10,185],"tags":[4,156],"yoast_head":"\nIndia Grade A Warehousing Report Q1 CY'26 | Key Trends and Insights<\/title>\n<meta name=\"description\" content=\"Explore the CRE Matrix India Grade A Warehousing Report Q1 CY'26 covering demand, supply, vacancy, rentals, city-wise trends, and market outlook.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.crematrix.com\/blog\/indias-grade-a-warehousing-market-starts-cy26-on-a-strong-note-demand-outpaces-supply\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"India Grade A Warehousing Report Q1 CY'26 | Key Trends and Insights\" \/>\n<meta property=\"og:description\" content=\"Explore the CRE Matrix India Grade A Warehousing Report Q1 CY'26 covering demand, supply, vacancy, rentals, city-wise trends, and market outlook.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.crematrix.com\/blog\/indias-grade-a-warehousing-market-starts-cy26-on-a-strong-note-demand-outpaces-supply\/\" \/>\n<meta property=\"og:site_name\" content=\"CRE Matrix\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/abhishek.k.gupta.1840\" \/>\n<meta property=\"article:published_time\" content=\"2026-07-08T06:58:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-07-11T06:59:58+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.crematrix.com\/blog\/wp-content\/uploads\/2026\/07\/Indias-Grade-A-Warehousing-Market-Starts-CY26-1024x701.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"701\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Abhishek Kiran Gupta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.crematrix.com\/blog\/#website\",\"url\":\"https:\/\/www.crematrix.com\/blog\/\",\"name\":\"CRE Matrix\",\"description\":\"A Deep Analytics Platform for Real Estate\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.crematrix.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.crematrix.com\/blog\/indias-grade-a-warehousing-market-starts-cy26-on-a-strong-note-demand-outpaces-supply\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/www.crematrix.com\/blog\/wp-content\/uploads\/2026\/07\/Indias-Grade-A-Warehousing-Market-Starts-CY26.png\",\"contentUrl\":\"https:\/\/www.crematrix.com\/blog\/wp-content\/uploads\/2026\/07\/Indias-Grade-A-Warehousing-Market-Starts-CY26.png\",\"width\":1216,\"height\":832,\"caption\":\"India's Grade A Warehousing Market Starts CY'26\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.crematrix.com\/blog\/indias-grade-a-warehousing-market-starts-cy26-on-a-strong-note-demand-outpaces-supply\/#webpage\",\"url\":\"https:\/\/www.crematrix.com\/blog\/indias-grade-a-warehousing-market-starts-cy26-on-a-strong-note-demand-outpaces-supply\/\",\"name\":\"India Grade A Warehousing Report Q1 CY'26 | Key Trends and Insights\",\"isPartOf\":{\"@id\":\"https:\/\/www.crematrix.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.crematrix.com\/blog\/indias-grade-a-warehousing-market-starts-cy26-on-a-strong-note-demand-outpaces-supply\/#primaryimage\"},\"datePublished\":\"2026-07-08T06:58:00+00:00\",\"dateModified\":\"2026-07-11T06:59:58+00:00\",\"author\":{\"@id\":\"https:\/\/www.crematrix.com\/blog\/#\/schema\/person\/42ca5522d031ca1eeb2e34cbf87ad2c1\"},\"description\":\"Explore the CRE Matrix India Grade A Warehousing Report Q1 CY'26 covering demand, supply, vacancy, rentals, city-wise trends, and market outlook.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.crematrix.com\/blog\/indias-grade-a-warehousing-market-starts-cy26-on-a-strong-note-demand-outpaces-supply\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.crematrix.com\/blog\/indias-grade-a-warehousing-market-starts-cy26-on-a-strong-note-demand-outpaces-supply\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.crematrix.com\/blog\/indias-grade-a-warehousing-market-starts-cy26-on-a-strong-note-demand-outpaces-supply\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.crematrix.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"India’s Grade A Warehousing Market Starts CY’26 on a Strong Note: Demand Outpaces Supply\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.crematrix.com\/blog\/#\/schema\/person\/42ca5522d031ca1eeb2e34cbf87ad2c1\",\"name\":\"Abhishek Kiran Gupta\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.crematrix.com\/blog\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/www.crematrix.com\/blog\/wp-content\/uploads\/2026\/04\/20ab75cb7a69e0d1d28d4cd273ef3641dd44a27646442e00bea07a6e9c8b880b-100x100.png\",\"contentUrl\":\"https:\/\/www.crematrix.com\/blog\/wp-content\/uploads\/2026\/04\/20ab75cb7a69e0d1d28d4cd273ef3641dd44a27646442e00bea07a6e9c8b880b-100x100.png\",\"caption\":\"Abhishek Kiran Gupta\"},\"description\":\"CEO and Co-Founder\",\"sameAs\":[\"https:\/\/www.facebook.com\/abhishek.k.gupta.1840\",\"https:\/\/www.instagram.com\/abhishekkirangupta\/\",\"https:\/\/www.linkedin.com\/in\/abhishek-kiran-gupta-466ba64\/\",\"https:\/\/www.youtube.com\/@akg_voiceofrealestate\"],\"url\":\"https:\/\/www.crematrix.com\/blog\/author\/crematrix\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"India Grade A Warehousing Report Q1 CY'26 | Key Trends and Insights","description":"Explore the CRE Matrix India Grade A Warehousing Report Q1 CY'26 covering demand, supply, vacancy, rentals, city-wise trends, and market outlook.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.crematrix.com\/blog\/indias-grade-a-warehousing-market-starts-cy26-on-a-strong-note-demand-outpaces-supply\/","og_locale":"en_US","og_type":"article","og_title":"India Grade A Warehousing Report Q1 CY'26 | Key Trends and Insights","og_description":"Explore the CRE Matrix India Grade A Warehousing Report Q1 CY'26 covering demand, supply, vacancy, rentals, city-wise trends, and market outlook.","og_url":"https:\/\/www.crematrix.com\/blog\/indias-grade-a-warehousing-market-starts-cy26-on-a-strong-note-demand-outpaces-supply\/","og_site_name":"CRE Matrix","article_author":"https:\/\/www.facebook.com\/abhishek.k.gupta.1840","article_published_time":"2026-07-08T06:58:00+00:00","article_modified_time":"2026-07-11T06:59:58+00:00","og_image":[{"width":1024,"height":701,"path":"2026\/07\/Indias-Grade-A-Warehousing-Market-Starts-CY26-1024x701.png","url":"https:\/\/www.crematrix.com\/blog\/wp-content\/uploads\/2026\/07\/Indias-Grade-A-Warehousing-Market-Starts-CY26-1024x701.png","size":"large","id":3660,"alt":"India's Grade A Warehousing Market Starts CY'26","pixels":717824,"type":"image\/png"}],"twitter_card":"summary","twitter_misc":{"Written by":"Abhishek Kiran Gupta","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebSite","@id":"https:\/\/www.crematrix.com\/blog\/#website","url":"https:\/\/www.crematrix.com\/blog\/","name":"CRE Matrix","description":"A Deep Analytics Platform for Real Estate","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.crematrix.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"ImageObject","@id":"https:\/\/www.crematrix.com\/blog\/indias-grade-a-warehousing-market-starts-cy26-on-a-strong-note-demand-outpaces-supply\/#primaryimage","inLanguage":"en-US","url":"https:\/\/www.crematrix.com\/blog\/wp-content\/uploads\/2026\/07\/Indias-Grade-A-Warehousing-Market-Starts-CY26.png","contentUrl":"https:\/\/www.crematrix.com\/blog\/wp-content\/uploads\/2026\/07\/Indias-Grade-A-Warehousing-Market-Starts-CY26.png","width":1216,"height":832,"caption":"India's Grade A Warehousing Market Starts CY'26"},{"@type":"WebPage","@id":"https:\/\/www.crematrix.com\/blog\/indias-grade-a-warehousing-market-starts-cy26-on-a-strong-note-demand-outpaces-supply\/#webpage","url":"https:\/\/www.crematrix.com\/blog\/indias-grade-a-warehousing-market-starts-cy26-on-a-strong-note-demand-outpaces-supply\/","name":"India Grade A Warehousing Report Q1 CY'26 | Key Trends and Insights","isPartOf":{"@id":"https:\/\/www.crematrix.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.crematrix.com\/blog\/indias-grade-a-warehousing-market-starts-cy26-on-a-strong-note-demand-outpaces-supply\/#primaryimage"},"datePublished":"2026-07-08T06:58:00+00:00","dateModified":"2026-07-11T06:59:58+00:00","author":{"@id":"https:\/\/www.crematrix.com\/blog\/#\/schema\/person\/42ca5522d031ca1eeb2e34cbf87ad2c1"},"description":"Explore the CRE Matrix India Grade A Warehousing Report Q1 CY'26 covering demand, supply, vacancy, rentals, city-wise trends, and market outlook.","breadcrumb":{"@id":"https:\/\/www.crematrix.com\/blog\/indias-grade-a-warehousing-market-starts-cy26-on-a-strong-note-demand-outpaces-supply\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.crematrix.com\/blog\/indias-grade-a-warehousing-market-starts-cy26-on-a-strong-note-demand-outpaces-supply\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.crematrix.com\/blog\/indias-grade-a-warehousing-market-starts-cy26-on-a-strong-note-demand-outpaces-supply\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.crematrix.com\/blog\/"},{"@type":"ListItem","position":2,"name":"India’s Grade A Warehousing Market Starts CY’26 on a Strong Note: Demand Outpaces Supply"}]},{"@type":"Person","@id":"https:\/\/www.crematrix.com\/blog\/#\/schema\/person\/42ca5522d031ca1eeb2e34cbf87ad2c1","name":"Abhishek Kiran Gupta","image":{"@type":"ImageObject","@id":"https:\/\/www.crematrix.com\/blog\/#personlogo","inLanguage":"en-US","url":"https:\/\/www.crematrix.com\/blog\/wp-content\/uploads\/2026\/04\/20ab75cb7a69e0d1d28d4cd273ef3641dd44a27646442e00bea07a6e9c8b880b-100x100.png","contentUrl":"https:\/\/www.crematrix.com\/blog\/wp-content\/uploads\/2026\/04\/20ab75cb7a69e0d1d28d4cd273ef3641dd44a27646442e00bea07a6e9c8b880b-100x100.png","caption":"Abhishek Kiran Gupta"},"description":"CEO and Co-Founder","sameAs":["https:\/\/www.facebook.com\/abhishek.k.gupta.1840","https:\/\/www.instagram.com\/abhishekkirangupta\/","https:\/\/www.linkedin.com\/in\/abhishek-kiran-gupta-466ba64\/","https:\/\/www.youtube.com\/@akg_voiceofrealestate"],"url":"https:\/\/www.crematrix.com\/blog\/author\/crematrix\/"}]}},"_links":{"self":[{"href":"https:\/\/www.crematrix.com\/blog\/wp-json\/wp\/v2\/posts\/3655"}],"collection":[{"href":"https:\/\/www.crematrix.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.crematrix.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.crematrix.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.crematrix.com\/blog\/wp-json\/wp\/v2\/comments?post=3655"}],"version-history":[{"count":5,"href":"https:\/\/www.crematrix.com\/blog\/wp-json\/wp\/v2\/posts\/3655\/revisions"}],"predecessor-version":[{"id":3661,"href":"https:\/\/www.crematrix.com\/blog\/wp-json\/wp\/v2\/posts\/3655\/revisions\/3661"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.crematrix.com\/blog\/wp-json\/wp\/v2\/media\/3660"}],"wp:attachment":[{"href":"https:\/\/www.crematrix.com\/blog\/wp-json\/wp\/v2\/media?parent=3655"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.crematrix.com\/blog\/wp-json\/wp\/v2\/categories?post=3655"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.crematrix.com\/blog\/wp-json\/wp\/v2\/tags?post=3655"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}