The next time a food delivery or grocery order lands at your doorstep within minutes, chances are it passed through one of the many new warehouses that have come up around Delhi NCR this year. Warehouse leasing in the region touched 8 million square feet in the first half of 2026, up 66% from a year earlier, as e-commerce, quick-commerce and fast-moving consumer goods companies raced to secure storage space closer to the city, according to a report by Cushman & Wakefield.
Delhi NCR warehouse leasing: Gurgaon, Farukhnagar top the demand chart
Gurgaon accounted for the largest share of leasing at 38%, followed by Farukhnagar at 24% and Ghaziabad at 18%, the report said. Third-party logistics, or 3PL, firms drove much of this demand, taking up 44% of the warehouse space leased during the period. These are companies that manage storage and delivery on behalf of other brands rather than running warehouses themselves.
According to the report, leasing by 3PL players has doubled year-on-year as they absorbed space on behalf of e-commerce and quick-commerce brands looking to enter new markets and reach more neighbourhoods faster. Rising costs, tariffs imposed by the United States, and supply-chain disruption linked to the conflict in West Asia have also pushed large occupiers to lean more heavily on such logistics partners, the report noted, partly to manage compliance around carbon emissions across their supply chains.
FMCG warehouse demand surges 101% as beverage brands stock up for summer
Warehouse leasing by FMCG companies grew 101% year-on-year in the first half of the year, led by beverage brands. The report attributed this to a spike in demand for ready-to-drink products during a prolonged and intense summer, which boosted impulse purchases of both aerated and non-aerated drinks. It added that an anticipated El Niño weather pattern is expected to keep driving beverage sales through the rest of the year.
Large deals of 100,000 square feet or more made up 82% of all warehouse leasing in the period. With leasing outpacing new supply over the past year to eighteen months, vacancy levels have fallen into single digits by the middle of 2026, the report said.
Industrial shed leasing in Delhi NCR doubles on manufacturing, EV demand
It isn’t just warehouses. Industrial shed leasing, basically space used by manufacturers rather than logistics firms, reached 0.7 million square feet in the first half of the year, more than double the volume seen a year earlier, per the report. Farukhnagar again led with a 37% share, followed by Greater Noida and Sonipat. Engineering and manufacturing companies accounted for nearly half of this leasing, followed by automobile and FMCG firms, with clean energy and auto-component manufacturers cited as key drivers behind the shed leasing.
Delhi NCR warehouse rents, land prices surge up to 30% in a year
The increased demand has pushed up costs across the board. Warehouse and industrial shed rents rose between 10 and 15% across Delhi NCR, with Palwal recording a 20% jump in warehouse rents, the report said. Land prices in the region have risen even faster, climbing 20 to 30% over the past year, with Palwal, Faridabad and Bhiwadi seeing appreciation of more than 30 per cent.
Among specific submarkets, NOIDA Phase II commanded the highest industrial rent at Rs 45 per square foot per month, a 25% rise from a year earlier, while Haryana’s Faridabad saw the sharpest land price jump, up 67% year-on-year to Rs 20 crore per acre, according to the report.
Delhi NCR warehousing outlook: Big deals, rising supply crunch ahead
Among notable deals through the period, Kuehne + Nagel leased 300,000 square feet of warehouse space from ESR Logistics in Gurgaon, while Nestle took up 215,000 square feet in Sonipat and VIP Industries leased 150,000 square feet in Ghaziabad, the report showed. On the land side, Michelin Tyres bought 14 acres in Ghamroj.
Around 4 million square feet of fresh warehouse space is expected to come up over the next year, but for now, supply is struggling to keep pace with demand.