Mumbai, Delhi-NCR and Bengaluru emerged among the top 10 Asia-Pacific (APAC) markets for logistics rental growth in the first half of 2026 (H1 2026), with annual rental growth of 5.3 per cent, 5.2 per cent and 4.4 per cent, respectively, according to Knight Frank’s Asia-Pacific Logistics Highlights for H1.
Mumbai recorded the fourth-highest annual rental growth among the 18 markets tracked by the real estate consultancy. This growth trailed Brisbane, Singapore and Melbourne. Delhi-NCR ranked fifth, while Bengaluru was placed seventh.
Across APAC, logistics rents increased 1.2 per cent on a half year-on-half year (H-o-H) basis in H1 2026, with 15 of the 18 tracked cities recording stable or higher rents.
India remained one of the most active logistics occupier markets in the region, supported by manufacturing growth, domestic consumption and supply-chain diversification, Knight Frank said.
Demand was broad-based, with manufacturers, e-commerce companies, retailers and third-party logistics (3PL) providers seeking modern facilities to accommodate larger inventories, automation and increasingly-sophisticated distribution networks.
Investments linked to semiconductor and advanced manufacturing supply chains also supported occupier activity.
Mumbai Metropolitan Region (MMR) recorded 5.3 per cent Y-o-Y and 4.4 per cent H-o-H rental growth during H1 2026. Prime rents stood at ₹26 per sq ft per month, while vacancy declined to 13.5 per cent. The 12-month rental outlook indicated further growth.
Delhi-NCR recorded 5.2 per cent Y-o-Y and 2.8 per cent H-o-H rental growth. Prime rents were at ₹22.30 per sq ft per month, while vacancy declined to 14.7 per cent. Bengaluru posted 4.4 per cent Y-o-Y and 2.2 per cent H-o-H rental growth, with prime rents at ₹23.50 per sq ft per month and vacancy at 17.6 per cent.
“India’s logistics sector continues to demonstrate strong structural resilience, supported by sustained manufacturing activity, domestic consumption and the ongoing diversification of supply chains. 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,” said Shishir Baijal, International partner, chairman and managing director, Knight Frank India.
Knight Frank expects APAC rental growth to remain measured, with rents largely stable and growth below 2 per cent in H2 2026.
