Three Indian cities — Mumbai, Delhi-NCR and Bengaluru — ranked among the Asia Pacific’s top 10 markets for logistics rental growth in the first half of 2026, according to a report by property consultant Knight Frank.
During January-June, Mumbai Metropolitan Region (MMR) posted a strong rental growth of 5.3% year-on-year, Delhi-NCR 5.2% and Bengaluru 4.4%, it said.
Prime rents set to rise
Prime property rents stood at Rs 26 per square feet per month in MMR, Rs 22.30 in Delhi-NCR, and Rs 23.50 in Bengaluru. Vacancy declined to 13.5% in Mumbai, 14.7% in Delhi-NCR, and 17.6% in Bengaluru, the report stated, adding these markets remained balanced. The 12-month rental outlook pointed towards further growth in Mumbai and Delhi-NCR, and remained positive for Bengaluru.
Logistics demand stays strong
Shishir Baijal, international partner, chairman and managing director, Knight Frank India, said, “The healthy rental growth recorded across Mumbai, Delhi-NCR and Bengaluru reflects sustained occupier demand, even as the market becomes increasingly selective about location, connectivity and asset quality. With occupiers placing greater emphasis on operational efficiency and modern, institutional-grade facilities, we expect India’s logistics real estate market to remain on a steady growth trajectory in the near to medium term.”
Across the Asia-Pacific region, 15 of the 18 tracked cities recorded stable or increasing rents in the first half of 2026. Leasing activity was largely driven by relocations, consolidations and upgrades, as occupiers adopted a more disciplined approach to their logistics footprints and focused on improving operational efficiency and network performance. This continued to support a flight-to-quality, with demand favouring modern warehouses offering better functionality, technology integration and sustainability credentials, it said.