Mumbai, Delhi-NCR and Bengaluru have emerged among the top 10 Asia-Pacific (APAC) markets for logistics rental growth in the first half of 2026, reflecting sustained occupier demand across India’s key logistics hubs, according to Knight Frank’s Asia-Pacific Logistics Highlights H1 2026.
Mumbai Metropolitan Region (MMR) recorded the strongest rental growth among the three Indian markets, with rents rising 5.3 per cent year-on-year (YoY) and 4.4 per cent on a half-year basis during H1 2026. Delhi-NCR posted 5.2 per cent YoY growth, while Bengaluru recorded 4.4 per cent YoY growth.
The performance of the three Indian markets compared favourably with the broader APAC logistics market, where rents increased by 1.2 per cent on a half-year basis during the period.
India remained one of the most active logistics occupier markets in the APAC region, supported by continued manufacturing growth, domestic consumption and supply-chain diversification. Demand was broad-based across manufacturers, e-commerce companies, retailers and third-party logistics (3PL) providers, with occupiers increasingly seeking modern facilities capable of supporting larger inventories, automation and more sophisticated distribution networks.
Mumbai Leads Indian Markets
MMR ranked fourth among the 18 APAC markets tracked by Knight Frank, making it the highest-ranked Indian market in the regional rental growth table.
Prime logistics rents in MMR stood at Rs 26 per sq ft per month, while vacancy declined to 13.5 per cent. The 12-month outlook remains positive, with further rental growth expected.
Delhi-NCR ranked fifth in the APAC table, recording 5.2 per cent YoY rental growth and 2.8 per cent growth on a half-year basis. Prime rents stood at Rs 22.30 per sq ft per month, while vacancy declined to 14.7 per cent. Knight Frank described the market as balanced, with the outlook pointing towards further rental growth.
Bengaluru ranked seventh, with rents increasing 4.4 per cent YoY and 2.2 per cent during H1 2026. Prime rents stood at Rs 23.50 per sq ft per month, while vacancy declined to 17.6 per cent. The 12-month rental outlook for the city also remained positive.
India Gains Ground in APAC
Brisbane topped the APAC rental growth ranking with 10.4 per cent annual growth, followed by Singapore at 6.8 per cent and Melbourne at 5.6 per cent.
Overall, 15 of the 18 APAC markets tracked by Knight Frank recorded stable or rising rents during H1 2026. Leasing activity was primarily driven by relocations, consolidations and upgrades, as occupiers increasingly focused on improving operational efficiency and network performance.
This trend is contributing to a broader flight-to-quality, with companies moving towards modern warehouses offering better connectivity, higher specifications, automation capabilities and improved sustainability credentials.
Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, said India’s logistics sector continued to demonstrate strong structural resilience, supported by manufacturing activity, domestic consumption and supply-chain diversification.
He said rental growth across Mumbai, Delhi-NCR and Bengaluru reflected sustained occupier demand, even as companies became more selective about location, connectivity and asset quality.
Focus Shifts to Efficiency and Quality
According to Knight Frank, the APAC logistics market has entered a more mature phase of the current cycle. Occupiers are increasingly prioritising the quality and efficiency of facilities rather than simply adding capacity.
The greater availability of logistics options is allowing companies to optimise their property portfolios, consolidate operations and upgrade to higher-specification facilities. Long-term operational efficiency, sustainability and supply-chain resilience are becoming increasingly important factors in location and facility decisions.
Knight Frank expects rental growth across the APAC region to remain measured in H2 2026, with rents largely stable and growth expected to remain below 2 per cent.
However, continued supply-chain diversification and manufacturing investments are expected to support logistics demand in India, keeping Mumbai, Delhi-NCR and Bengaluru relatively well positioned within the broader APAC logistics market.