Mumbai, Delhi-NCR, and Bengaluru have all made Knight Frank's top 10 APAC markets for logistics rental growth in H1 2026, with India's warehousing sector outperforming a broadly stabilising region.
While most of Asia-Pacific's logistics rental growth is expected to stay below 2% through the rest of 2026, India's three major warehousing markets are running well ahead of that pace. Mumbai, Delhi-NCR, and Bengaluru have all landed among the top 10 APAC markets for annual logistics rental growth in the first half of 2026, according to Knight Frank's latest regional report. That's a genuinely strong showing given the broader region is described as stabilising rather than accelerating.
Mumbai posted the strongest growth among the three Indian markets, with rents rising 4.4% year-on-year during H1 2026. Prime logistics rents in the city now stand at ₹26 per sq ft per month, and vacancy has declined to 13.5%, a market Knight Frank classifies as balanced with further growth expected over the next 12 months. Delhi-NCR followed closely at 2.8% rental growth, with prime rents at ₹22.30 per sq ft per month and vacancy falling to 14.7%. Bengaluru posted 2.2% growth, prime rents at ₹23.50 per sq ft per month, though vacancy there remains comparatively higher at 17.6%.
Shishir Baijal, International Partner, Chairman and Managing Director of Knight Frank India, tied the growth to structural rather than cyclical factors, pointing to sustained manufacturing activity, domestic consumption, and ongoing supply-chain diversification as the drivers. He added that healthy rental growth across all three markets reflects sustained occupier demand, with companies increasingly prioritising location, connectivity, and asset quality when choosing logistics facilities, rather than simply taking whatever space is available.
That last point matters specifically for Delhi-NCR. Jewar's growing role as a logistics and cargo catalyst for the region lines up directly with what Knight Frank is describing nationally, occupiers chasing connectivity and asset quality rather than just cheap square footage, and NCR's industrial corridors near the airport are positioned to benefit from exactly that shift.
Across the 18 APAC markets Knight Frank tracks, 15 recorded stable or rising rents in H1 2026, with leasing activity increasingly driven by relocations, consolidation, and upgrades rather than pure expansion. The consultancy describes this as a "flight-to-quality" trend, occupiers moving toward modern warehouses with better functionality, technology integration, and sustainability credentials, and away from older, lower-spec stock even when it's cheaper.
For India specifically, continued investment in manufacturing, including semiconductor and advanced manufacturing supply chains, is expected to provide an additional demand catalyst for logistics real estate going forward.
This data adds a genuinely useful data point if you're tracking NCR's broader real estate momentum beyond residential. A logistics sector growing faster than most of the region, with vacancy declining and rents rising on the back of structural demand rather than a temporary spike, tends to support surrounding infrastructure and connectivity investment that eventually feeds into residential demand nearby too.
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It's worth watching whether Delhi-NCR's 2.8% growth rate holds or accelerates through H2 2026, particularly as more of Jewar's cargo and logistics capacity comes online.
