India’s industrial and logistics property market recorded 24.3 million sq ft of absorption in Q3 2026, up 14.1% year over year, while fresh completions rose 21.3% to 26.2 million sq ft, according to Savills India Research. The national numbers describe a growing market with supply expanding faster over the quarter; they do not establish whether a particular warehouse has tenants, a suitable location or a defensible rent.
What Savills reports for Q3
Savills’ report puts Q3 absorption at 24.3 million sq ft and completions at 26.2 million sq ft. For January to September, it reports 59.1 million sq ft of absorption, up 6.9% year over year, against 68.9 million sq ft of supply, up 25.3%. Those comparisons are useful as a screening signal, not as a vacancy rate: the report does not define its absorption measure in detail or provide asset-level vacancy and rent data. See Savills’ Q3 report and its original PDF.
The geography is uneven. Savills assigns Bengaluru 16% of Q3 absorption, while Tier II and III markets together represented 18% of absorption and 27% of supply. A national total can therefore hide very different local leasing conditions. The report’s city share is not a forecast for Bengaluru rents or a specific industrial corridor.
BestProp.ai’s property check: move from national totals to the asset
For a warehouse or industrial property under review, ask for evidence at the submarket and building level: current occupied area, lease start and expiry dates, tenant concentration, vacant units, operating and utility capacity, access for freight, and any committed but unsigned space. Compare the asking rent with executed leases in the same micro-market, not with a national growth rate.
That checklist is an analytical response to the limits of the report. Savills’ four-page summary is useful for context, but it does not answer whether a building is occupied or whether an incoming tenant can use its power, access and floor configuration.
Frequently asked questions
Does supply growth above absorption prove oversupply?
No. The national comparison does not show the vacancy, lease terms or submarket mix of a particular property. It is a reason to inspect local evidence, not a conclusion about every market.
What share of Q3 absorption did Bengaluru represent?
Savills’ city-wise summary assigns Bengaluru 16% of Q3 2026 industrial and logistics absorption. That share does not by itself measure local rents, vacancy or future demand.
Sources and limits
This article uses Savills India Research’s original Q3 2026 report, listed on Savills’ India site. The report does not explain its data collection or define absorption in detail. No independent asset-level vacancy, rent or tenant dataset is inferred from the national figures.