In Q1 2026, Mumbai emerged as the leader in warehousing absorption, recording 4.76 million sq ft, which accounted for 42% of the total demand across the top seven Indian cities. However, this figure represents a 14% decline from 5.56 million sq ft in the same quarter of the previous year, as reported by Vestian. The overall warehousing absorption for the top cities was 11.4 million sq ft, also down 14% from 13.3 million sq ft in Q1 2025. Despite the decline, leasing activity remained strong, particularly from third-party logistics (3PL), engineering, manufacturing, and consumer goods sectors. Pune showed remarkable recovery with 4.46 million sq ft absorbed, marking a 162% increase quarter-on-quarter and 42% year-on-year. In contrast, NCR and Chennai witnessed significant drops in absorption, with NCR recording 0.73 million sq ft, down 61% from the previous quarter. Looking ahead, the warehousing sector is anticipated to grow with a focus on supply chain resilience and demand for modern facilities, projecting an annual absorption exceeding 45 million sq ft by the end of 2026.