Mumbai has emerged as one of Asia-Pacific's top performers in logistics rental growth, recording 5.3% annual rental growth in H1 2026, according to Knight Frank's Asia-Pacific Logistics Highlights H1 2026. The city ranked fourth globally among 18 tracked markets, trailing only Brisbane, Singapore and Melbourne. Delhi-NCR followed closely with 5.2% annual growth, ranking fifth, while Bengaluru posted 4.4% growth, securing seventh position. Across APAC, logistics rents increased 1.2% on a half-year-on-half-year basis, with 15 of the 18 tracked cities recording stable or higher rents. India remained one of the most active logistics occupier markets in the region, supported by manufacturing growth, domestic consumption and supply-chain diversification.
Mumbai has established itself as India's premier industrial and warehousing destination, with leasing volumes reaching 10.7 million square feet in the first half of 2026. According to a Knight Frank report, this represents a 44% year-on-year increase, demonstrating the city's growing appeal in the logistics sector. The surge reflects the combination of improved freight connectivity, expanding manufacturing activities, and increasing third-party logistics (3PL) demand across the region. The completion of the Western Dedicated Freight Corridor in March 2026 has been a key catalyst, improving freight connectivity between Jawaharlal Nehru Port Trust (JNPT), Gujarat, Maharashtra and the National Capital Region.
Mumbai's dominance in India's warehousing landscape has strengthened significantly, with the city accounting for nearly 29% of total leasing activity across India's eight major industrial and warehousing markets during the first half of 2026. As reported by Knight Frank, this represents an increase from 23% in the previous year, highlighting the city's growing market share in the industrial real estate sector. The substantial market share growth indicates Mumbai's ability to attract both domestic and international logistics operators seeking strategic warehouse locations. The city's relatively low availability of Grade A warehouse space, particularly from occupiers seeking large-scale facilities, has supported this demand surge.
Mumbai Metropolitan Region recorded 5.3% year-on-year and 4.4% half-on-half rental growth during H1 2026, with prime rents standing at ₹26 per sq ft per month and vacancy declining to 13.5%. Delhi-NCR posted 5.2% year-on-year and 2.8% half-on-half rental growth, with prime rents at ₹22.30 per sq ft per month and vacancy at 14.7%. Bengaluru achieved 4.4% year-on-year and 2.2% half-on-half rental growth, recording prime rents at ₹23.50 per sq ft per month with vacancy at 17.6%. The 12-month rental outlook indicates further growth potential across these markets.
Manufacturing companies and third-party logistics (3PL) operators emerged as key drivers of leasing activity, with manufacturing accounting for 46% of total leasing, or 17 million sq ft, up 17% from a year earlier. The 3PL sector strengthened its position, with its share of total leasing rising to 30% from 27%, while leasing by 3PL operators increased 27% to 11.1 million sq ft. Retail leasing surged 70% year-on-year as hypermarkets and organised grocery chains expanded their distribution networks, while e-commerce recorded a 44% decline as major platforms shifted towards consolidating distribution networks following years of rapid capacity expansion. Demand was broad-based, with manufacturers, e-commerce companies, retailers and 3PL providers seeking modern facilities to accommodate larger inventories, automation and increasingly sophisticated distribution networks.
