Synopsis : Mumbai, Delhi-NCR and Bengaluru have emerged among the top 10 Asia-Pacific markets for logistics rental growth in the first half of 2026, driven by strong occupier demand and declining vacancies.
The trend highlights India’s growing importance as a major logistics and warehousing hub, with modern facilities and better connectivity driving future growth.
India’s logistics real estate sector is gaining significant momentum, with Mumbai, Delhi-NCR and Bengaluru securing places among the top 10 Asia-Pacific markets for logistics rental growth during the first half of 2026.
According to a report by property consultant Knight Frank, strong demand for high-quality warehouses, improving infrastructure and a growing preference for modern logistics facilities have supported rental growth across these major Indian markets.
Mumbai Leads Rental Growth
During the January-June 2026 period, the Mumbai Metropolitan Region (MMR) recorded the strongest rental growth among the three cities, with rents rising 5.3% year-on-year.
Delhi-NCR followed closely with 5.2% growth, while Bengaluru registered a 4.4% increase in logistics rents.
The performance reflects sustained demand from companies seeking strategically located warehouses with strong connectivity and modern infrastructure.
Prime Rents Continue to Strengthen
Prime logistics property rents stood at:
- MMR: ₹26 per square foot per month
- Delhi-NCR: ₹22.30 per square foot per month
- Bengaluru: ₹23.50 per square foot per month
At the same time, vacancy levels declined, indicating healthy demand across these markets.
Mumbai recorded a vacancy rate of 13.5%, followed by Delhi-NCR at 14.7% and Bengaluru at 17.6%. Despite these differences, all three markets were described as relatively balanced.
Demand Shifts Towards Modern Warehouses
The logistics industry is increasingly witnessing a flight-to-quality, with companies preferring modern, technology-enabled and institutionally developed facilities.
Businesses are becoming more selective about factors such as:
- Strategic location
- Transport connectivity
- Operational efficiency
- Technology integration
- Warehouse quality
- Sustainability features
As supply chains become more sophisticated, companies are increasingly consolidating operations and upgrading to larger and more efficient logistics facilities.
Positive Outlook for Indian Logistics Real Estate
The 12-month outlook remains encouraging for India's major logistics hubs. Mumbai and Delhi-NCR are expected to witness further rental growth, while Bengaluru's outlook also remains positive.
Across the wider Asia-Pacific region, 15 out of 18 tracked cities recorded stable or increasing logistics rents during the first half of 2026.
Leasing activity has been supported by corporate relocations, warehouse consolidations and facility upgrades. Companies are focusing on improving network performance while reducing operational inefficiencies.
India Strengthens Its Position
The strong performance of Mumbai, Delhi-NCR and Bengaluru highlights India's growing role in the global logistics and supply-chain ecosystem.
With e-commerce expansion, manufacturing growth, infrastructure development and rising demand for organised warehousing, India's logistics real estate sector appears positioned for continued expansion in the coming years.
As occupiers increasingly prioritise high-quality facilities, modern warehouses with advanced technology and strong sustainability standards could become the biggest beneficiaries of the country's next phase of logistics growth.
Disclaimer : This article is for informational purposes only and is based on the details provided. Readers should independently verify market data and consult qualified professionals before making any business or investment decisions.
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