Ahmedabad : Ahmedabad’s warehousing market witnessed a remarkable 92% year-on-year growth in leasing activity during Q1 2026, according to Knight Frank India’s latest India Industrial and Warehousing Market Report – Q1 2026. The city recorded 1.9 million sq ft of warehousing transactions during the quarter, making it one of the fastest-growing warehousing markets among India’s top eight cities.
Driven by strong occupier demand from manufacturing and logistics players, Ahmedabad continued to strengthen its position as a major industrial and distribution hub in western India. The city accounted for nearly 13% of the overall manufacturing leasing volumes recorded during the quarter. The report also highlighted a steady increase in warehousing rentals in Ahmedabad, with average rents rising 5% year-on-year to INR 19.3 per sq ft per month.
Across India’s eight major warehousing markets, transaction volumes touched 19.3 million sq ft in Q1 2026, registering a 15% YoY growth despite global supply chain disruptions and rising logistics costs. Mumbai led the market with 7.4 million sq ft of leasing activity, while Ahmedabad and Kolkata emerged as high-growth markets during the quarter.
The manufacturing sector remained the dominant demand driver for India’s warehousing market, contributing 48% of the total transaction volume with 9.3 million sq ft leased during the quarter. Automotive, heavy engineering and energy companies continued to expand their warehousing footprint, supported by India’s growing manufacturing ecosystem and supply chain diversification strategies.
Commenting on the market performance, Rumit Parikh, Senior Director – Occupier Strategy & Solutions, Industrial & Logistics and Retail, Branch Head (Ahmedabad and Indore), Knight Frank India, said: “Ahmedabad’s warehousing market continues to benefit from the city’s growing prominence as a manufacturing and distribution hub in western India. The 92% YoY growth in transaction volumes to 1.9 mn sq ft in Q1 2026 reflects sustained occupier confidence, particularly from manufacturing and logistics players. Improved industrial connectivity, competitive rentals and expanding supply ecosystems are further strengthening Ahmedabad’s position as an important warehousing and industrial destination.”
Knight Frank noted that India’s resilient macroeconomic environment and increasing preference for efficient supply chain networks are expected to continue driving demand for industrial and warehousing spaces across key markets in the coming quarters.