How quality and connectivity shaped India's logistics demand in H1

The country remains one of Asia Pacific's busiest logistics markets.

India remained one of Asia-Pacific's most active logistics occupier markets in the first half of 2026, supported by sustained manufacturing growth, domestic consumption and continued supply chain diversification, according to Knight Frank.

The firm said demand remained broad-based, with occupiers seeking facilities capable of accommodating larger inventories, automation initiatives and increasingly sophisticated distribution networks.

Development activity remained robust, but new supply was generally absorbed by healthy leasing demand across major urban centres, keeping overall market conditions broadly balanced.

Occupiers were increasingly focused on warehouse quality, connectivity and operational efficiency, reflecting the growing maturity of India's logistics sector and the expanding role of institutional-grade facilities.

Manufacturers, e-commerce companies, retailers and third-party logistics providers led leasing activity during the period. Knight Frank said India's logistics sector continued to benefit from expanding occupier requirements, infrastructure improvements and deeper integration with regional and global supply chains.