5 days ago
Mumbai, Delhi-NCR, Bengaluru Lead APAC Logistics Rental Growth
Three Indian cities did well in the market for warehouses and other logistics buildings.
Mumbai had the biggest increase in rents, followed by Delhi-NCR and Bengaluru.
This means companies were willing to pay more to use good logistics spaces.
Vacancies also fell in all three markets.
Businesses such as manufacturers, online retailers, retailers and delivery companies needed larger and better-equipped facilities.
They wanted warehouses with automation, technology and sustainable features.
Across Asia-Pacific, 15 of 18 tracked cities had stable or rising rents.
Knight Frank expects India’s logistics property market to keep growing in the near to medium term.
Mumbai, Delhi-NCR and Bengaluru ranked among APAC’s top 10 logistics rental-growth markets in H1 2026.
Mumbai Metropolitan Region led the Indian markets with 5.3% year-on-year rental growth, followed by Delhi-NCR at 5.2% and Bengaluru at 4.4%.
Prime rents were Rs 26 per sq ft monthly in Mumbai, Rs 22.30 in Delhi-NCR and Rs 23.50 in Bengaluru.
Vacancy declined to 13.5% in Mumbai, 14.7% in Delhi-NCR and 17.6% in Bengaluru.
Knight Frank attributed demand to manufacturing, consumption, supply-chain diversification and occupier preference for modern, technology-enabled warehouses.
- Who
- Mumbai Metropolitan Region, Delhi-NCR and Bengaluru, with demand from manufacturers, e-commerce companies, retailers and third-party logistics providers.
- What
- The three Indian markets ranked among Asia-Pacific’s top 10 for logistics rental growth in the first half of 2026.
- Where
- The markets are in India and were assessed within the Asia-Pacific logistics market.
- When
- January through June 2026, or the first half of 2026.
- Why
- Demand was supported by manufacturing growth, domestic consumption, supply-chain diversification and demand for modern, efficient logistics facilities.
Key facts
- Report
- Knight Frank logistics market report
- Period
- First half of 2026
- Mumbai rental growth
- 5.3% year-on-year; 4.4% half-on-half
- Delhi-NCR rental growth
- 5.2% year-on-year
- Bengaluru rental growth
- 4.4% year-on-year
- Prime monthly rents
- Rs 26 per sq ft in Mumbai, Rs 22.30 in Delhi-NCR and Rs 23.50 in Bengaluru
- Asia-Pacific trend
- 15 of 18 tracked cities recorded stable or increasing rents; regional rents rose 1.2% half-on-half
Quotes
Shishir Baijal
International Partner, Chairman and Managing Director of Knight Frank India
“The healthy rental growth recorded across Mumbai, Delhi-NCR and Bengaluru reflects sustained occupier demand, even as the market becomes increasingly selective about location, connectivity and asset quality. With occupiers placing greater emphasis on operational efficiency and modern, institutional-grade facilities, we expect India’s logistics real estate market to remain on a steady growth trajectory in the near to medium term.”
thehansindia.com
financialexpress.com
“While elevated availability in select East Asian markets kept rental growth measured, supply-chain diversification and manufacturing investments continued to provide a strong demand catalyst for India.”
thehansindia.com
Sources
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