Mumbai, Delhi NCR and Bengaluru Among APAC’s Top Logistics Markets for Rental Growth
NEW DELHI, August 31, 2026: Mumbai, Delhi-NCR and Bengaluru have emerged among the top 10 Asia-Pacific logistics markets for rental growth in the first half of 2026, according to a Knight Frank report.
Mumbai recorded the strongest growth among the three Indian markets at 5.3% year-on-year, followed by Delhi-NCR at 5.2% and Bengaluru at 4.4%.
Mumbai Leads Indian Markets
Mumbai Metropolitan Region recorded 5.3% annual rental growth, with prime logistics rents reaching ₹26 per sq ft per month. Vacancy also declined to 13.5%, indicating steady demand for quality logistics space.
Delhi-NCR recorded 5.2% annual growth and 2.8% growth during H1 2026. Prime rents stood at ₹22.30 per sq ft per month, while vacancy fell to 14.7%.
Bengaluru saw 4.4% annual rental growth, with rents increasing 2.2% during H1. Prime logistics rents reached ₹23.50 per sq ft per month, while vacancy declined to 17.6%.
Manufacturing and E-Commerce Drive Demand
According to the report, India's logistics real estate demand is being supported by manufacturing, e-commerce, retail and third-party logistics companies.
Businesses are increasingly seeking modern facilities to support larger inventories, automation and more efficient distribution networks. Investments linked to semiconductors and advanced manufacturing are also contributing to demand.
Positive Outlook for Indian Logistics Real Estate
Knight Frank expects all three Indian markets to maintain a positive 12-month rental outlook.
Across the Asia-Pacific region, 15 of 18 tracked cities recorded stable or rising rents during H1 2026. However, rental growth is expected to remain moderate in the second half of the year, with regional growth projected to stay below 2%.
Why It Matters for Real Estate
Rising logistics rents and declining vacancies point to continued demand for warehouses, distribution centres and industrial properties in India's major consumption and manufacturing hubs. This could support further investment in logistics-focused real estate around Mumbai, Delhi-NCR and Bengaluru.