Delhi-NCR warehouse rents fell 10% in H1; investment dropped 98%: Vestian report resurfacing August findings

Resurfacing an August 2025 Vestian report: Delhi-NCR warehousing rents declined 10% year-on-year to Rs 21 per sq ft a month in January-June 2025, while sector investment fell 98% to USD 32 million. Pune bucked the trend with a 13% rise in rents to Rs 31 per sq ft a month.

— Source publishedFri, 8 Aug, 2025, 14:48 IST·First seen Sun, 27 Sept, 2026, 11:50 IST·Source Business Standard (via Wayback)

What happened

Vestian reported a 10% annual drop in Delhi-NCR warehousing rents in H1 2025, while investments plunged 98%. Rental trends varied across major cities, with Pune

Key facts

  • Delhi-NCR warehousing rentals fell 10% year-on-year to Rs 21 per sq ft per month in January-June 2025
  • Around 60% of Delhi-NCR leasing was below the city's average rent
  • Pune rentals rose 13% to Rs 31 per sq ft per month
  • Mumbai rentals fell 2% to Rs 18 per sq ft per month
  • Warehousing investment fell 98% year-on-year to USD 32 million in H1 2025

Why this matters

Corporates can use softer Delhi-NCR rents and constrained capital availability to pursue lease, JV, or distressed-asset opportunities, while treating Pune as a more competitive growth market.

What to watch

  • Delhi-NCR Grade-A warehouse vacancy, net absorption and lease-renewal spreads in H2 2025.
  • Quarterly institutional investment, developer debt availability and land transactions in NCR logistics corridors.
  • Quick-commerce dark-store expansion, e-commerce festive-season order volumes and retailer inventory-to-sales ratios.
  • New supply completions and pre-leasing levels in NH-8, NH-24, Kundli-Sonipat and Greater Noida corridors.
  • Whether Pune's 13% rent growth broadens to other major warehousing markets or reverses as supply is delivered.
  • Renegotiate Delhi-NCR warehouse leases due within the next 12-18 months, targeting lower base rents, fit-out contributions and flexible expansion clauses.
  • Shift incremental inventory capacity toward lower-cost Delhi-NCR nodes while retaining Pune capacity for western-region fulfillment where rents are still rising.
  • Prioritize asset-light 3PL contracts and multi-client facilities rather than committing capital to build-to-suit projects until funding conditions improve.
  • Use lower occupancy costs to add micro-fulfillment, returns-processing or inventory-buffer capacity near high-density NCR demand clusters.
  • Stress-test logistics-network plans against a 2026-27 Grade-A supply shortfall if investment does not recover.