Delhi-NCR Leads India’s Logistics Markets with 3% YoY Rental Growth in H1 2024

Knight Frank's latest Asia-Pacific (APAC) Logistics report reveals that the APAC logistics market saw 2.4% year-over-year (YoY) rental growth in H1 2024, a notable slowdown from the 6.2% growth witnessed in H1 2023. Despite the regional deceleration, Delhi-NCR outperformed with a 3.0% YoY rental increase, leading India's logistics markets, while Mumbai and Bengaluru reported rental growth slightly below the regional average at 2.3%. The Indian logistics sector continues to display stability, driven by sustained demand for warehousing and logistics spaces. Since the pandemic, India's warehousing market has seen substantial rental growth, with occupier demand peaking in FY 2023. Although there has been a slight tapering off in occupier activity, Delhi-NCR, Mumbai, and Bengaluru maintained rental levels comparable to those at the end of H1 2023. However, high vacancy rates in Delhi-NCR (15.7%) and Bengaluru (21.1%), largely due to speculative development, may limit future rental growth. Even so, strong demand from the manufacturing and 3PL sectors, along with high development costs, is expected to keep rent levels steady through