Mumbai has emerged as a leader in India's warehousing sector, capturing 42% of the total absorption in Q1 2026, according to a report by Vestian. The overall absorption for the quarter reached 11.4 million sq ft, reflecting an 8% increase from the previous quarter but a 14% decline year-on-year. The western markets, particularly Mumbai and Pune, are driving this growth, with Pune's market share rising dramatically to 39%, the highest recorded for the city. The Bhiwandi micro-market in Mumbai is a key growth area, contributing 69% of the city's absorption and 30% of the national leasing volume. However, the National Capital Region (NCR) experienced a significant downturn, with its absorption share dropping to 6% from 17% in the previous quarter. Institutional investments in the sector fell sharply to only USD 22 million, a 96% decline compared to the end of 2025. Despite these challenges, the long-term outlook for the warehousing and logistics sector remains optimistic, bolstered by government initiatives and increasing demand for efficient supply chain networks.