India’s Logistics Powerhouses: Delhi, Mumbai, Bengaluru Among APAC’s Top 10 for Rental Growth

Delhi-NCR, Mumbai, and Bengaluru have solidified their spots among the top 10 logistics markets in the Asia-Pacific (APAC) region for yearly rental growth in the second half of 2024, based on Knight Frank's recent report. The success is a testament to the increasing importance of India in the logistics sector in the face of regional challenges.

 

Key Rankings and Growth Rates

 

Delhi-NCR: At 6th position with a rental growth of 2.8% YoY, at ₹21.07 per square foot per month. Vacancy levels fell to 14.5%, indicating strong demand.

 

Mumbai: Held the 7th position with a growth of 2.3% YoY, rentals rising to ₹23.94 per square foot per month. Vacancy rates marginally rose to 11.8%.

 

Bengaluru: Ranked 10 with a growth rate in rentals of 1.5% YoY, rents climbing to ₹22.13 per square foot per month. Vacancy levels at 18.9%.

 

Driving Factors

The growth is attributed to India's robust GDP outlook and the government's attention to the manufacturing industry, which has boosted demand for warehousing space. Diversified warehousing requirements and institutional investment further strengthen the market's upswing.

 

Knight Frank forecasts India's logistics industry will stay vibrant during 2025 based on additional supply and steady demand from industries such as manufacturing and third-party logistics.

 

Source: OdishaTV