India’s major logistics markets are outperforming much of the Asia-Pacific region in rental growth, supported by sustained manufacturing activity, strong domestic consumption and supply-chain diversification, according to Knight Frank’s latest Asia-Pacific Logistics Highlights report.
Mumbai, Delhi-NCR and Bengaluru ranked among the top 10 Asia-Pacific markets for annual logistics rental growth in the first half of 2026. Mumbai recorded the strongest increase among the three, with logistics rents rising 5.3% year on year, followed by Delhi-NCR at 5.2% and Bengaluru at 4.4%.
Mumbai’s prime logistics rents reached around ₹26 per sq ft per month, while vacancy declined to 13.5%. Delhi-NCR recorded prime rents of approximately ₹22.30 per sq ft per month, with vacancy at 14.7%. Bengaluru’s prime rents stood at around ₹23.50 per sq ft per month, while vacancy was 17.6%.
The strong performance reflects growing occupier demand for modern, well-connected logistics facilities as manufacturers and supply-chain operators diversify their production and distribution networks. India’s combination of manufacturing investments and expanding domestic consumption is providing stronger demand support than many other APAC markets.
By comparison, the wider APAC logistics market recorded only 1.2% half-year rental growth in H1 2026. Knight Frank expects regional rents to remain broadly stable in the second half of the year, with rental growth likely to remain below 2%.
India’s logistics markets are expected to maintain positive momentum in the near to medium term, with continued manufacturing investment and supply-chain restructuring likely to support demand for quality warehousing and distribution space.