Synopsis
Delhi-NCR, Mumbai, and Bengaluru have emerged as leading logistics markets in the Asia-Pacific region for rental growth in H2 2024, according to Knight Frank. Delhi-NCR and Mumbai recorded significant year-on-year growth rates, surpassing the regional average, while Bengaluru also showed promising trends.Key Takeaways
- Delhi-NCR, Mumbai, and Bengaluru are in the top 10 APAC logistics markets for rental growth.
- Delhi-NCR recorded a YoY rental growth of 2.8 percent.
- Mumbai's rental rates increased by 2.3 percent YoY.
- Bengaluru saw a YoY growth of 1.5 percent in rental rates.
- Vacancy rates in these cities are showing varying trends.
Mumbai, March 29 (NationPress) Delhi-NCR, Mumbai, and Bengaluru have been recognized as part of the top 10 logistics markets for growth in the Asia-Pacific region during the second half of 2024, surpassing the regional average, as highlighted in a report released on Saturday.
The Asia-Pacific (APAC) logistics sector experienced a modest rental increase of 0.2 percent year-on-year (YoY). However, Delhi-NCR achieved a notable growth of 2.8 percent, while Mumbai and Bengaluru saw increases of 2.3 percent and 1.5 percent, respectively, exceeding the regional average (YoY), according to Knight Frank’s ‘Asia-Pacific Logistics Highlight H2 2024’ report.
Delhi-NCR ranks sixth in the APAC logistics market based on annual rental growth.
With a rate of Rs 21.07 per square foot per month, the city experienced a 2.8 percent YoY rental growth. The current vacancy rate in the market is 14.5 percent, as reported.
Mumbai holds the seventh position in the APAC logistics market for annual rental growth. The city’s rental rates have risen by 2.3 percent YoY to Rs 23.94 per square foot per month, with a vacancy rate increasing to 11.8 percent in H2 2024.
Bengaluru is positioned at the 10th rank in the APAC logistics market concerning annual rental growth in H2 2024. The city’s rents increased by 1.5 percent YoY to Rs 22.13 per square foot per month, while the vacancy rate stands at 18.9 percent.
“The favorable GDP growth forecast is anticipated to foster a vibrant business landscape and encourage occupier activities throughout 2025. With an additional 2 million sqm expected to be available in 2025, the anticipated demand is likely to be adequately met,” stated Shishir Baijal, Chairman and Managing Director of Knight Frank India.
The government’s emphasis on the manufacturing sector is yielding positive results, leading to robust demand from this sector.
The thriving business environment, varied warehousing demand, and increasing institutional interest are expected to sustain the market's momentum in the near to medium term, Baijal added.
