Mumbai, Delhi-NCR, and Bengaluru have ranked among the top 10 cities in the Asia-Pacific (APAC) region for annual logistics rental growth in the first half of 2026, according to a report released on Friday, 28 August 2026 by global real estate consultancy Knight Frank. The findings underscore India's rising stature as one of the most active logistics occupier markets in APAC.

How Indian Cities Ranked

Mumbai Metropolitan Region led the three Indian markets with the strongest annual rental growth, posting a 5.3% year-on-year rise and a 4.4% half-on-half increase in H1 2026. Delhi-NCR followed closely at 5.2% year-on-year growth, while Bengaluru recorded a 4.4% year-on-year rise in logistics rents.

Prime rents in Mumbai stood at ₹26 per sq ft per month, with vacancy declining to 13.5%. In Delhi-NCR, prime rents reached ₹22.30 per sq ft per month, with vacancy falling to 14.7%.

APAC-Wide Logistics Market Trends

Across the broader APAC region, logistics rents grew 1.2% half-on-half in H1 2026, with rents broadly stable to moderately higher. As many as 15 of the 18 tracked cities recorded stable or increasing rents during the period.

Leasing activity was largely driven by relocations, consolidations, and upgrades, as occupiers adopted a more disciplined approach to their logistics footprints. The trend continued to support a flight-to-quality, with demand favouring modern warehouses offering better functionality, technology integration, and sustainability credentials, according to the report.

What Is Driving Demand in India

India's logistics market was supported by sustained manufacturing growth, domestic consumption, and ongoing supply-chain diversification. 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.

Growing investments linked to semiconductor and advanced manufacturing supply chains also supported occupier activity, the report noted. Notably, elevated availability in select East Asian markets kept rental growth measured there, making India's trajectory comparatively more robust.

Industry Outlook

Shishir Baijal, International Partner, Chairman and Managing Director of Knight Frank India, said: '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.'

The report forecast that resilient occupier demand and a preference for higher-quality facilities will keep India's key logistics markets relatively well positioned within the broader APAC landscape going into the second half of 2026.