Delhi warehousing stock projected to reach 121.3m sq ft in 2026

Grade A developments will drive the pipeline.

Delhi NCR's warehousing sector recorded strong growth in the first quarter of 2026, with gross absorption rising more than 41% year-on-year as occupiers continued to favour Grade A logistics facilities, according to JLL.

Gross absorption reached 4.47 million sq ft during the quarter, while net absorption totalled 2.8 million sq ft. Delhi-NH8 emerged as the most active submarket, followed by the Faridabad-Palwal and Sonipat-Hassangarh corridors.

Third-party logistics providers accounted for the largest share of demand, with electronics, FMCG, engineering and e-commerce occupiers also contributing significantly.

The market added 4.2 million sq ft of new supply during the quarter, led by institutionally backed Grade A developments in Delhi-NH8. Additional supply was also concentrated in Faridabad-Palwal and Sonipat-Hassangarh.

Vacancy increased modestly to 20% as new supply outpaced absorption. Grade B vacancy climbed to 28.5%, highlighting a growing mismatch between occupier demand and lower-quality stock.

Strong demand for premium facilities contributed to a 2.2% year-on-year increase in rents. JLL attributed the growth to stable Grade A occupancy levels, institutional investment activity and rising land costs.

Looking ahead, the consultancy expects NCR warehouse stock to reach 121.3 million sq ft by 2026, supported by continued Grade A development. Major infrastructure initiatives, including the Delhi-Mumbai Industrial Corridor, Western Dedicated Freight Corridor and Eastern Dedicated Freight Corridor, are expected to support long-term demand and keep vacancy below 15% over the next four years.