Mumbai, Delhi-NCR and Bengaluru logistics rents rise on warehouse demand: Knight Frank

Knight Frank India says prime logistics rents rose 5.3% year-on-year in MMR, 5.2% in Delhi-NCR and 4.4% in Bengaluru in January-June 2026, reflecting demand for modern, well-connected warehousing. Rising rents could add to supply-chain costs for retailers and e-commerce operators.

— Source publishedSat, 29 Aug, 2026, 07:05 IST·First seen Sat, 29 Aug, 2026, 07:34 IST·Source Financial Express · BrandWagon

What happened

Knight Frank India · Knight Frank reported strong logistics-rent growth in Mumbai, Delhi-NCR and Bengaluru, supported by occupier demand for modern, connected

Key facts

  • MMR logistics rents rose 5.3% year-on-year in January-June 2026
  • Delhi-NCR rents rose 5.2% year-on-year
  • Bengaluru rents rose 4.4% year-on-year
  • Prime monthly rents: MMR Rs 26/sq ft, Delhi-NCR Rs 22.30/sq ft, Bengaluru Rs 23.50/sq ft
  • Vacancy: Mumbai 13.5%, Delhi-NCR 14.7%, Bengaluru 17.6%
  • 15 of 18 tracked Asia-Pacific cities had stable or rising rents

Why this matters

Strong demand for well-connected warehousing increases the strategic value of logistics partnerships, regional fulfillment assets and acquisition targets with established distribution networks.

What to watch

  • Quarterly logistics vacancy rates, new supply completions and pre-commitment levels in MMR, Delhi-NCR and Bengaluru.
  • E-commerce order-volume growth, festive-season inventory builds and retailer store-expansion plans.
  • Transport fuel costs, urban congestion restrictions and last-mile delivery charges, which may amplify warehouse-rent pressure.
  • Prime-versus-secondary warehouse rent spreads and leasing activity in peripheral corridors.
  • Land acquisition, zoning and infrastructure upgrades around new freight corridors, ports, airports and expressways.
  • Prioritize lease renewals and multi-year agreements in high-throughput locations before further rent resets.
  • Re-model fulfillment economics by pin code, including rent, transport, labor, returns and delivery-speed commitments.
  • Expand hub-and-spoke capacity in lower-cost peripheral corridors while retaining prime urban nodes for fast-moving inventory.
  • Accelerate automation, vertical storage and shared-space utilization to improve throughput per square foot.
  • Review customer-facing delivery thresholds, seller fees and assortment rationalization where last-mile economics have deteriorated.