NCR accounts for 21.8% of India’s warehousing demand; rents jump 44% since 2023 | Real Estate News

The National Capital Region (NCR) has emerged as India's leading warehousing market, accounting for 21.8% of cumulative absorption across the country's eight major cities between 2021 and the third quarter of 2026. Warehousing rents in the region have surged 44% since 2023, reaching ₹33 per sq ft per month in Q3 2026, marking the steepest rental appreciation among the eight markets, according to an ANAROCK Research and Advisory report released on Wednesday.

National Capital Region (NCR) has emerged as India's leading warehousing market, accounting for 21.8% of cumulative absorption across the country's eight major cities between 2021 and the third quarter of 2026. (Picture for representational purposes only) (Pexels)India's warehousing and industrial real estate market recorded net absorption of 49.5 million sq ft during the first nine months of 2026, registering a 16.2% year-on-year increase against 42.6 million sq ft in the corresponding period last year. Cumulative net absorption across the eight cities reached 266.5 million sq ft between 2021 and September 2026.

NCR maintained its lead with a 21.8% share of cumulative absorption, followed by Mumbai Metropolitan Region (MMR) at 18.5% and Pune at 17.4%. Pune has overtaken Bengaluru, which accounted for 15.1% of the total absorption. Together, NCR, MMR and Pune contributed nearly 58% of the cumulative warehousing demand.

Peush Jain, managing director, commercial leasing and advisory, ANAROCK Group, said the growth was encouraging, but remained concentrated in a few markets, with significant differences in rental appreciation and vacancy levels across cities.

"NCR, MMR and Pune together accounted for nearly 58% of cumulative absorption across the top eight cities," Jain said.

The national average monthly warehousing rent stood at ₹28.1 per sq ft in Q3 2026, registering a 27% increase since 2021. In NCR, rents rose from ₹22.2 per sq ft in 2021 to ₹33 per sq ft in Q3 2026, a 49% increase over five years. The report noted that rental growth in the region was particularly sharp in recent years, with a 44% jump between 2023 and Q3 2026.

MMR continued to command the highest average rent at ₹43.9 per sq ft per month, while Ahmedabad recorded the lowest at ₹19 per sq ft. Pune's average rent stood at ₹27.4 per sq ft.

The national warehousing vacancy rate was 7.9% as of September 2026, while NCR recorded 7.3%. Pune had the lowest vacancy at 6.8%, followed by Chennai and Kolkata at 7.1% each. Bengaluru reported the highest vacancy at 11.5%.

The report also highlighted changing occupier demand, with third-party logistics (3PL) accounting for 26% of national warehousing demand, followed by manufacturing at 22% and the automotive sector at 10%. In NCR, demand was relatively diversified, led by 3PL at 26%, manufacturing at 17% and retail at 13%.

Jain said the availability and quality of warehousing stock, location, occupier requirements and the nature of industrial activity would determine rental performance across markets. He added that developers and investors would need to assess individual market fundamentals rather than rely solely on national demand growth.

Leena Dhankhar is Senior Editor and Bureau Chief, Gurugram, at Hindustan Times, where she has spent over 17 years chronicling the transformation of one of India's fastest-growing urban regions. From starting her career as a crime reporter to leading the Gurugram bureau, her journalism has been defined by investigative reporting, in-depth storytelling and an unwavering focus on public interest. Over nearly two decades, she has reported extensively across crime, politics, civic governance, elections, real estate, environment, courts, sports, education and entertainment, covering Gurugram, Faridabad, Nuh and Palwal. Her reporting has exposed several major scams and systemic failures, including insurance frauds, waste management irregularities, illegal arms manufacturing units in Nuh, illegal mining in the Aravallis, organised crime networks and governance lapses affecting millions of residents. Known for her investigative work and exclusive stories, Leena has reported on high-impact national issues, including the Nicaragua charter flight carrying Indian migrants that was turned back amid allegations of human trafficking, exposing the growing network of illegal immigration rackets. Her work has also focused on gang wars, prison administration, juvenile crime, women and child protection systems, the functioning of the Juvenile Justice Board and Child Welfare Committee, and environmental challenges such as pollution, waterlogging and deteriorating civic infrastructure. Beyond hard news, Leena has extensively documented Haryana's rich heritage, forests and wildlife, bringing attention to the state's historical landmarks, biodiversity, conservation efforts and ecological challenges through immersive reportage and feature writing. Her journalism has consistently gone beyond breaking news. She has documented Gurugram's rapid urbanisation through long-form narratives and enterprise reporting on issues ranging from pothole-ridden roads, flooding and waste management to the changing social fabric of India's Millennium City. She also writes widely read feature columns, including The Outsider, Changemaker, and Concern for Gurugram, profiling people, places and ideas shaping the city's identity. Leena is the author of Gurugram School Murder, published by Juggernaut Books, a deeply reported account of one of India's most high-profile school murder investigations. She is currently working on her second book, an investigative work exploring some of India's most significant scams and fraud investigations. Beyond print journalism, she has expanded her storytelling through public speaking and digital media. She is a TEDx speaker and has produced podcasts exploring Gurugram's transformation, civic challenges and untold stories. Her work reflects a commitment to narrative journalism that combines rigorous reporting with compelling storytelling. A law graduate with an MBA in Human Resources, Leena brings a multidisciplinary perspective to her reporting, particularly on governance, public policy and legal affairs. She has travelled extensively across India to pursue investigative assignments, often reporting from remote locations and conflict-prone areas in search of stories that matter.Read More