New Delhi: Mumbai, Delhi-NCR and Bengaluru ranked among Asia-Pacific’s top 10 cities for annual logistics rental growth during the first half of 2026, reflecting sustained demand for modern warehousing facilities, according to a Knight Frank report.
Mumbai Leads Growth
Mumbai Metropolitan Region recorded the strongest rental increase among the three Indian markets, with logistics rents rising 5.3 per cent year-on-year and 4.4 per cent half-on-half.
Delhi-NCR followed with annual growth of 5.2 per cent, while Bengaluru registered a 4.4 per cent year-on-year increase.
Prime logistics rents in Mumbai stood at Rs 26 per sq ft per month, while vacancy declined to 13.5 per cent. Delhi-NCR rents were Rs 22.30 per sq ft per month, with vacancy falling to 14.7 per cent.
Warehousing Demand Stays Firm
India remained among APAC’s most active logistics occupier markets, supported by manufacturing expansion, domestic consumption and supply-chain diversification.
Demand came from manufacturers, e-commerce companies, retailers and third-party logistics providers seeking larger inventories, automation capabilities and sophisticated distribution networks.
Investments linked to semiconductor and advanced manufacturing supply chains also supported leasing activity.
Across APAC, logistics rents increased 1.2 per cent half-on-half during H1 2026. Of 18 cities tracked, 15 recorded stable or higher rentals.
Knight Frank said occupiers increasingly preferred modern warehouses offering better functionality, technology integration and sustainability credentials.
The consultancy expects resilient demand and preference for institutional-grade facilities to keep India’s major logistics markets on a steady growth trajectory over the near to medium term.
