New Delhi, Aug 28 (IANS) Indian cities such as Mumbai, Delhi‑NCR and Bengaluru ranked among the top 10 Asia‑Pacific (APAC) cities for annual logistics rental growth in the first half of 2026, a report said on Friday.
Mumbai Metropolitan Region posted the strongest annual rental growth among the three Indian markets, with rents rising 5.3 per cent year‑on‑year and 4.4 per cent HoH in H1 2026, the report from Knight Frank said.
Delhi-NCR followed Mumbai at 5.2 per cent growth and Bengaluru at 4.4 per cent recorded strong YoY rental rise.
The APAC logistics market recorded 1.2 per cent half‑year‑on‑half‑year rental growth in H1 2026, with rents broadly stable to moderately higher across the region.
India remained one of the most active logistics occupier markets in APAC, supported by sustained manufacturing growth, domestic consumption and ongoing supply-chain diversification.
Demand was broad-based, with manufacturers, e-commerce companies, retailers and third-party logistics (3PL) providers seeking modern facilities to accommodate larger inventories, automation and increasingly sophisticated distribution networks. Growing investments linked to semiconductor and advanced manufacturing supply chains also supported occupier activity, the report noted.
As many as 15 of the 18 tracked cities in APAC recorded stable or increasing rents in H1 2026. Leasing activity was largely driven by relocations, consolidations and upgrades, as occupiers adopted a more disciplined approach to their logistics footprints and focused on improving operational efficiency and network performance.
The trend continued to support a flight-to-quality, with demand favouring modern warehouses offering better functionality, technology integration and sustainability credentials, the report noted.
Prime rents in Mumbai stood at Rs 26 per sq ft per month, and vacancy declined to 13.5 per cent, while rents in Delhi stood at Rs 22.30 per sq ft per month and vacancy declined to 14.7 per cent.
“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,” the firm said.
The report forecasted that resilient occupier demand and preference for higher-quality facilities will keep India’s key logistics markets relatively well positioned within the broader APAC landscape.
“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,” said Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India.
—IANS
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