New Delhi:InstitutionalInvestments in warehousing and industrial segment of Indian real estate rose 53 per cent in January-June to $49 million, according to Vestian.

US-based real estate consultant Vestian on Tuesday said in a statement that the leasing of warehousing and industrial space rose 16 per cent annually to 22 million sq ft in the first half of 2026 across seven major cities -- Mumbai, Delhi-NCR, Chennai, Kolkata, Pune, Hyderabad and Bengaluru. The consultant stated that the leasing activity remained resilient during the first half of 2026, indicating healthy occupier demand.

The demand was primarily driven by 3PL (third-party logistics), consumer goods & services; and engineering and manufacturing sectors, it added. Leasing activity increased on the back of sustained manufacturing expansion, robust domestic consumption and ongoing infrastructure upgrades.

Institutional investments in warehousing reached $49 million during the first half of this year, up from $32 million in the year-ago period. Despite the increase, Vestian pointed out that the sector continued to account for just 1 per cent of the total institutional investments during H1 2026. This reflects a cautious investment environment. Shrinivas Rao, CEO of Vestian, said, "India's warehousing sector is undergoing a structural transformation, evolving beyond traditional priorities such as supply chain optimisation, operational efficiency, and proximity to demand centres." He noted that sustainability has emerged as a key differentiator, with occupiers increasingly seeking Grade-A green warehouses that align with their ESG commitments and long-term business objectives. "Backed by supportive government policies and sustained infrastructure development, this transition is expected to accelerate further, reinforcing the sector's appeal to both global occupiers and long-term institutional investors," Rao said.