HOMMEA
← The Hommea Journal
Real Estate

Mumbai, Delhi-NCR, and Bengaluru Rank Among APAC's Top Logistics Markets as Warehouse Rents Keep Climbing

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.

By Ananya Rao/September 1, 2026/3 min read/NEW DELHI, Delhi
Mumbai, Delhi-NCR, and Bengaluru Rank Among APAC's Top Logistics Markets as Warehouse Rents Keep Climbing

India's Warehouses Are Working Harder Than the Region Average

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.

The Actual Numbers, City by City

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%.

Why This Is Happening Now

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.

The Bigger Regional Pattern

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.

What the Rent Numbers Are Actually Signaling

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.

Recommended For You: Top Residential Areas in Noida: A Sector-by-Sector Guide for 2026

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.

By the numbers · NEW DELHI, Delhi
38%
Capital-value growth, 2021–2025
50%+
Landscaped open area in new launches
24 mo
Window before supply catches demand
AR
Ananya Rao
Markets editor at Hommea, covering residential pricing, infrastructure, and sustainable development across Delhi NCR.
Keep reading

Enter email

HOMMEA

The information provided on this website, including project details, prices, availability, specifications, amenities, offers, and other related information, is intended for general informational purposes only. Project details are compiled from publicly available sources, such as State RERA websites, official builder portals, and documents shared by authorised channel partners. While we make reasonable efforts to keep the information accurate and up to date, we do not warrant that all information displayed on the website is complete, accurate, or current at all times.

Users are advised to independently verify the relevant details and conduct their own research and due diligence before making any purchase, investment, or financial decision. Prices, availability, offers, and other project details may vary from time to time depending on market conditions and other factors.