Savills’ India industrial and logistics report counted 26.2 million sq ft of fresh completions and 24.3 million sq ft of absorption in Q3 2026. That is a 1.9 million sq ft gap between space completed and space absorbed during the quarter. BestProp.ai’s read is narrow: supply grew faster than measured take-up in this period, but those two flows alone do not establish a national vacancy rate or prove that every warehouse market has excess stock.
What changed in the quarter
Savills reported Q3 absorption up 14.1% year on year, while completions rose 21.3%. The gap is visible in both the quarter’s absolute totals and its growth rates. A reader can reasonably say that delivered space outpaced reported absorption in the quarter; calling the whole market “oversupplied” would require additional evidence about vacant stock, location, building grade and lease-up.
The longer window is less dramatic than the quarterly comparison alone. Savills put cumulative absorption for the first nine months of 2026 at 59.1 million sq ft, up 6.9% year on year. Its report lists nine-month supply at 68.9 million sq ft, against 55 million sq ft in the same period a year earlier. These are reported market totals, not a forecast of what will be leased next.
Demand is not coming from one tenant type
The report assigns 31% of Q3 absorption to manufacturing, 26% to third-party logistics and 12% to retail. Those shares make the category broader than an online-commerce story. They also show why national totals can hide different demand drivers: a manufacturing-linked industrial park and a last-mile distribution facility do not compete for exactly the same tenants.
Savills says Bengaluru accounted for 16% of national Q3 absorption, behind Delhi-NCR at 20%. This is a share of the reported industrial and logistics measure, not Bengaluru’s residential demand, office take-up or home sales.
What a property buyer can use
For a buyer evaluating industrial land or a warehouse asset, the report is a market context check, not a property valuation. It does not identify the occupancy, lease terms, tenant credit, construction quality or parcel-level infrastructure of a particular asset. Those details need their own documents.
For residential readers, the same boundary matters: a logistics report is not evidence that nearby home prices will rise or fall. Our India Q3 housing launches and inventory report covers a separate residential dataset.
Quick answers
Did completions exceed absorption in Q3? Yes. Savills reports 26.2 mn sq ft completed and 24.3 mn sq ft absorbed.
Does that prove India has a 1.9 mn sq ft vacancy increase? No. The difference is between two reported flows; it is not a vacancy calculation.
Which sectors led Q3 absorption? Manufacturing at 31%, third-party logistics at 26%, and retail at 12%, according to Savills.