Kolkata, August 20, 2026: Knight Frank India, in its latest India Warehousing Market Report – H1 2026, highlighted Kolkata’s strong performance in the industrial and warehousing segment during the first half of 2026. The city recorded 2.4 mn sq ft of leasing activity, registering a 69% YoY increase from 1.4 mn sq ft in H1 2025. This made Kolkata the fastest-growing market in percentage terms among the eight primary industrial and warehousing markets tracked by Knight Frank India.
Kolkata’s performance came against the backdrop of continued resilience in India’s industrial and warehousing market. Leasing activity across the country’s eight primary markets reached 36.8 mn sq ft during H1 2026, representing a 15% YoY increase. The sector remained resilient despite geopolitical uncertainty, disruptions to global shipping routes, elevated freight costs and currency volatility, supported by robust domestic consumption, sustained manufacturing activity and continued investments in logistics infrastructure. The completion of the Western Dedicated Freight Corridor during the period further improved freight movement between India’s manufacturing centres, ports and consumption hubs. Enhanced connectivity strengthened occupier confidence and supported supply-chain optimisation across key industrial and logistics markets.
TRANSACTIONS DURING H1 2026 (Area in mn sq ft)
| H1 2025
(mn sq ft) |
H1 2026 (mn sq ft) | % Change YoY | |
| Kolkata | 1.4 | 2.4 | 69% |
| Mumbai | 7.5 | 10.7 | 44% |
| NCR | 5.1 | 5.9 | 17% |
| Pune | 5.2 | 4.6 | -12% |
| Ahmedabad | 3.6 | 4.1 | 15% |
| Bengaluru | 2.9 | 4.0 | 36% |
| Chennai | 4.1 | 3.0 | -27% |
| Hyderabad | 2.3 | 2.1 | -10% |
| Total | 32.1 | 36.8 | 15% |
Source: Knight Frank India
Shishir Baijal, International Partner, Chairman & Managing Director, Knight Frank India, said “India’s industrial and warehousing market has once again demonstrated its structural resilience amid an exceptionally challenging global environment. While geopolitical disruptions tested supply chains worldwide, India’s manufacturing ecosystem, improving infrastructure and strong domestic demand continued to drive occupier confidence. Manufacturing continues to remain the primary demand driver, while the steady expansion of third-party logistics reflects the ongoing transformation of India’s supply chain ecosystem towards greater efficiency and outsourcing. Although land availability and regulatory bottlenecks remain challenges for future supply creation, the long-term fundamentals of India’s industrial and warehousing sector remain firmly intact.”
Rental Growth Continues Across All Major Markets
Average warehousing rentals in Kolkata increased 4% YoY during H1 2026 to INR 26.0 /sq ft/month, compared with INR 24.9 /sq ft/month in H1 2025. The increase reflects the broader trend of rental appreciation across all eight major industrial and warehousing markets, supported by healthy occupier demand and sustained increases in land acquisition, construction and financing costs. Kolkata’s rental growth was in line with Hyderabad at 4%, while Mumbai and NCR recorded 5% growth, Ahmedabad and Bengaluru 6%, and Chennai 7%. Pune remained the country’s costliest warehousing market at INR 28.7 /sq ft/month.
Average rent (in INR/sq ft/month)
| Market | H1 2025 | H1 2026 | % Change |
| Pune | 27.0 | 28.7 | 6% |
| Mumbai | 24.7 | 26.0 | 5% |
| Kolkata | 24.9 | 26.0 | 4% |
| Chennai | 24.1 | 25.7 | 7% |
| Bengaluru | 22.7 | 24.0 | 6% |
| NCR | 21.5 | 22.6 | 5% |
| Hyderabad | 21.1 | 22.0 | 4% |
| Ahmedabad | 18.3 | 19.4 | 6% |
Source: Knight Frank India
Manufacturing and 3PL Continue to Drive Market Activity
Manufacturing occupiers remained the single largest demand driver during H1 2026, accounting for 46% of the total leasing volume, with transactions reaching 17.0 mn sq ft, reflecting a 17% YoY increase. Automotive, engineering, electronics and energy companies continued expanding their manufacturing footprint across key industrial corridors, supported by India’s growing role in global supply chain diversification and sustained policy support for domestic manufacturing.
The Third-Party Logistics (3PL) sector further strengthened its position as the second-largest occupier segment, contributing 30% of overall transactions with leasing of 11.1 mn sq ft, representing a 27% YoY growth. The continued expansion of organised logistics operators reflects a structural shift across Indian supply chains, with manufacturers and retailers
Industry-split of transaction volume
| H1 2026 in mn sq ft | YoY % change | |
| Other Manufacturing | 17.0 | 17% |
| 3PL | 11.1 | 27% |
| Retail | 2.5 | 70% |
| E-commerce | 1.9 | -44% |
| Miscellaneous | 1.5 | 51% |
| FMCG | 1.5 | -13% |
| FMCD | 1.3 | 5% |
| Total | 36 | 15% |
Source: Knight Frank India
Notes:
- Other Manufacturing – These include all manufacturing sectors (automobile, electronics, pharmaceuticals, etc.) except FMCG and FMCD.
- Miscellaneous – These include services such as telecom, real estate, document management, agricultural warehousing and publishing.
Outlook: Strong Fundamentals to Sustain Growth Through H2 2026
Looking ahead, India’s industrial and warehousing sector is expected to remain on a strong growth trajectory through the second half of 2026. Continued manufacturing expansion, increasing outsourcing of logistics operations, policy support for domestic manufacturing, and the strengthening of multimodal logistics infrastructure are expected to underpin occupier demand. The completion of the Dedicated Freight Corridor network, together with India’s growing attractiveness as an alternative global manufacturing destination, is likely to further reinforce long-term market fundamentals.
At the same time, the report highlights that land availability, fragmented ownership patterns, regulatory complexities and project approval timelines continue to pose key challenges to the timely creation of high-quality industrial and warehousing supply. Addressing these structural bottlenecks will be essential for translating India’s sustained occupier demand into future market growth and maintaining the country’s momentum as one of the world’s fastest-growing industrial and logistics destinations.
About Knight Frank:
Knight Frank LLP is a leading independent, global property consultancy. Headquartered in London, Knight Frank has 27,000+ people operating from over 740+ offices across more than 50 territories. The Group advises clients ranging from individual owners and buyers to major developers, investors, and corporate tenants. For further information about the Company, please visit www.knightfrank.com
Knight Frank India is headquartered in Mumbai and has more than 2,000 experts across Bangalore, Delhi, Pune, Hyderabad, Chennai, Kolkata, Ahmedabad, Indore and Kochi. Backed by strong research and analytics, our experts offer a comprehensive range of real estate services through advisory, valuation and consulting, transactions (commercial, retail, land capital and residential), project management, and facilities management. For more information, visit www.knightfrank.co.in
