Bengaluru warehouse leasing reached 3.1 million sq ft in the first half of 2026 — up 78% year on year, the fastest growth of any major Indian market. Vacancy fell to 11% against a national average of 17.2%. For anyone weighing an industrial parcel here, those two numbers matter more than any forecast: demand is outrunning supply in Bengaluru specifically, not in India generally.
The headline numbers
Cushman & Wakefield's H1 2026 Logistics & Industrial MarketBeat puts Bengaluru's performance well ahead of the national picture. Set the two side by side and the gap is the story.
| Measure | Bengaluru | India (top 8 cities) |
|---|---|---|
| Warehouse leasing, H1 2026 | 3.1 mn sq ft | ~22 mn sq ft |
| Year-on-year growth | +78% | +12% |
| Vacancy rate | 11% (down from 13%) | 17.2% |
| New Grade A supply added | ~2 mn sq ft | ~25 mn sq ft |
| Total logistics leasing | 4.4 mn sq ft (+63% over H2 2025) | — |
A vacancy rate six points below the national average, with leasing growing more than six times faster, is not a market with slack in it. It is a market where the good parcels go early and quietly.
Where the demand actually landed
The leasing did not spread evenly across the city. Two corridors took almost all of it.
- Western corridor — 52% of warehouse leasing, led by Nelamangala and Dabaspet. This is the NH-48 Bengaluru–Mumbai axis.
- Eastern submarket — 46%, driven by Hoskote.
- Industrial (as distinct from warehousing) — North Bengaluru took 35%, around Doddaballapur and the KIADB Hardware Park at Devanahalli. The western submarket added a further 28%.
Dabaspet appearing by name in a national research report is worth pausing on. It sits roughly 35 km from the city with direct NH-48 access and Dobbespet railway station about 2 km away — the shortest credible run to Bengaluru of any of the ten Karnataka corridors we work across. That combination is exactly what 3PL operators optimise for, and 3PL took 58% of Bengaluru's warehouse leasing in the half.
Who is taking the space
| Occupier type | Share | What it implies for land buyers |
|---|---|---|
| Third-party logistics | 58% | Highway access and truck turning circles outrank almost everything else |
| Manufacturing | 16% | Power load and effluent viability become the binding constraints |
| E-commerce | 15% | Proximity to the city, not to the highway, is what is being paid for |
| FMCG | 8% | Temperature control and dock count drive the specification |
The 3PL share is the number that should shape a site decision. When more than half the market is logistics operators, the parcels that clear fastest are the ones with clean highway approach and road width sufficient for a 40-foot container — not the ones with the lowest headline rate.
What happened to pricing
Rents moved, but land moved faster:
Warehouse rentals rose 4–5% annually
Steady, in line with a tightening vacancy rate rather than ahead of it.
Industrial rentals rose 3–4% annually
Slightly behind warehousing, reflecting the 3PL-weighted demand mix.
Land prices rose 9–10%
Roughly double the rental growth. When land outpaces rent, it usually signals buyers pricing in future scarcity rather than current yield.
That last figure is the one to weigh if you are deciding between acting this year and waiting. A 9–10% annual land movement compounds against a buyer who delays, and the corridors absorbing the most leasing are precisely the ones where it compounds fastest.
What this means if you are buying in the next twelve months
Three practical consequences follow from the data above.
Shortlist on the freight route before the rate. With vacancy at 11%, you will not have unlimited choice. The corridor that suits your inbound and outbound movement should narrow the field first; price compares the survivors.
Do the utility check early. Manufacturing is only 16% of leasing, which means most available parcels have been specified for logistics, not for process industry. Power load, water volume and effluent viability need confirming before a parcel reaches your shortlist, not after.
Treat the western corridor as competitive. More than half of Bengaluru's warehouse leasing landed in one corridor. If your requirement points to NH-48, expect to move quickly on a parcel that fits.
Frequently asked questions
Is Bengaluru industrial land more expensive than other Indian cities?
Why is Bengaluru's vacancy rate so much lower than the national average?
Which Bengaluru corridor is best for a logistics operation?
Does this data cover industrial land or only warehousing?
Should I wait for prices to soften before buying?
Sources
Bengaluru figures: Cushman & Wakefield H1 2026 Logistics & Industrial MarketBeat, as reported by Maritime Gateway. National figures: Colliers India, H1 2026. Our commentary on corridor suitability draws on our own transaction experience across ten Karnataka industrial areas.
Tell us the land area, power load and timeline you are working to, and we will come back with what is actually available in the corridor that fits.
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