Indian logistics hubs outperform Asia Pacific markets on rental growth
- IBEF
- August 31, 2026
India's key logistics markets continued to outperform the broader Asia Pacific region on rental growth, supported by sustained manufacturing activity, domestic consumption and ongoing supply-chain diversification, according to Knight Frank data. Prime logistics rents in Mumbai rose 5.3% year-on-year in the first half of the year, while Delhi-NCR and Bengaluru recorded growth of 5.2% and 4.4% respectively, compared with 1.2% half-year-on-half-year rental growth across the Asia Pacific logistics market during the same period. Mumbai recorded the strongest rental growth among the three Indian markets, with prime rents at Rs. 26 per sq ft per month (US$ 0.27 per sq ft per month), up 4.4% over the six months to June, while vacancy declined to 13.5%. In Delhi-NCR, prime logistics rents stood at Rs. 22.30 per sq ft per month (US$ 0.23 per sq ft per month), rising 2.8% during the period and 5.2% annually, with vacancy declining to 14.7%.
Mr. Shishir Baijal, International Partner, CMD, Knight Frank India, said India's logistics sector continues to demonstrate strong structural resilience, supported by manufacturing, consumption and supply-chain diversification, and expects the market to remain on a steady growth trajectory in the near to medium term. Mr. Anshuman Singh, MD and CEO, IndoSpace, said rental growth is strengthening the investment case for institutional-grade warehousing and industrial assets, with the market moving towards larger, professionally managed developments along key consumption and manufacturing corridors. India's performance stood out against a more measured APAC market, where 15 of the 18 cities tracked by Knight Frank recorded stable or increasing rents, with growth constrained in some East Asian markets by elevated availability.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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