India’s major logistics markets recorded significantly faster rental growth than the broader Asia-Pacific region in the first half of 2026, as manufacturing activity, domestic consumption and supply-chain diversification continued to support demand for modern warehousing space. Data from Knight Frank shows prime logistics rents increased 5.3% year-on-year in Mumbai, 5.2% in Delhi-NCR and 4.4% in Bengaluru. By comparison, logistics rents across the Asia-Pacific market increased 1.2% on a half-year-on-half-year basis during the same period. The stronger performance in India reflects sustained requirements from manufacturers, retailers, e-commerce companies and third-party logistics providers. Companies are increasingly looking for facilities capable of handling larger inventories, automation and more complex distribution networks. Mumbai posted the highest annual rental growth among the three Indian markets tracked by Knight Frank. Delhi-NCR recorded prime rents of ₹22.30 per sq ft per month. In Bengaluru, prime logistics rents rose 2.2% over six months and 4.4% annually to ₹23.50 per sq ft per month.  The rental gains come as occupiers become more selective about the type and location of logistics facilities they lease. Rather than simply adding capacity, companies are increasingly assessing warehouse efficiency, connectivity, technology integration and the ability of facilities to support more sophisticated supply-chain operations. This has strengthened demand for professionally managed, institutional-grade warehouses, particularly along established manufacturing and consumption corridors. The trend also has implications for developers and investors. Rising rents in established logistics markets are improving the potential returns from modern industrial and warehousing assets, while occupier requirements are encouraging larger and better-specified developments. India’s rental performance stands in contrast to a more moderate logistics property market across Asia-Pacific. Knight Frank data showed that 15 of the 18 cities tracked in the region recorded either stable or higher rents during the period, although overall rental growth remained restrained. Higher availability in some East Asian markets has limited pricing pressure. Leasing activity in several parts of the region is increasingly being driven by companies relocating, consolidating facilities or moving into better-quality warehouses rather than by significant expansion of their overall logistics footprints. The regional outlook is also being shaped by investments in semiconductor and advanced manufacturing supply chains. Such industries typically require specialised logistics infrastructure and could generate additional demand for strategically located warehousing and industrial facilities. For India, the combination of manufacturing expansion, domestic consumption and efforts by companies to diversify supply chains provides a relatively strong demand base for logistics real estate. The market is therefore moving beyond the earlier emphasis on adding warehouse capacity. Location, operating efficiency, facility specifications and the ability to support increasingly complex supply chains are becoming more important factors in determining demand and rental performance. India’s leading logistics hubs are consequently entering the next phase of the property cycle with rental growth running ahead of the broader Asia-Pacific market, although the pace of future increases will depend on the balance between new supply and occupier demand. Follow CARGOCONNECT for more such updates.