India’s Logistics Hubs Outpace Asia-Pacific Rental Growth in H1 2026

India’s major logistics markets delivered stronger rental growth than the broader Asia-Pacific region during the first half of 2026, with Mumbai, Delhi-NCR and Bengaluru emerging among the region’s top-performing markets, according to Knight Frank’s Asia-Pacific Logistics Highlights H1 2026 report.

Mumbai Metropolitan Region (MMR) recorded the highest rental growth among the three Indian markets, with logistics rents rising 5.3% year-on-year and 4.4% on a half-year basis. Prime logistics rents stood at ₹26 per sq ft per month, while vacancy declined to 13.5%.

Delhi-NCR followed closely, registering 5.2% annual rental growth and a 2.8% increase during the first half of the year. Prime rents reached ₹22.30 per sq ft per month, with vacancy falling to 14.7%.

Bengaluru recorded 4.4% year-on-year rental growth and a 2.2% increase on a half-year basis. Prime logistics rents stood at ₹23.50 per sq ft per month, while vacancy was higher at 17.6%. Knight Frank maintained a positive 12-month outlook for the Bengaluru logistics market.

The performance placed Mumbai, Delhi-NCR and Bengaluru within the top 10 of the 18 Asia-Pacific markets tracked by Knight Frank. Mumbai ranked fourth for annual rental growth, followed by Delhi-NCR in fifth place and Bengaluru in seventh.

The strength of India’s logistics sector is closely linked to the continued expansion of manufacturing, domestic consumption and supply-chain diversification. Manufacturers, e-commerce companies, retailers and third-party logistics providers are increasingly seeking modern facilities that can support larger inventories, automation and more sophisticated distribution networks.

Investment linked to semiconductor and advanced manufacturing supply chains is also adding to occupier demand. At the same time, companies are becoming more selective about location, connectivity and the quality of logistics assets.

Knight Frank India Chairman and Managing Director Shishir Baijal said the sector continued to show structural resilience, with sustained occupier demand supporting rental growth across the three major markets.

Across Asia-Pacific, logistics rents increased 1.2% on a half-year basis during H1 2026. Knight Frank expects rental growth to remain measured in the second half, with regional growth likely to stay below 2%. India’s leading logistics hubs, however, are expected to remain relatively well positioned as manufacturing investment and supply-chain diversification continue.