India's Logistics Market Sees Growth Amidst Global Slowdown: Delhi NCR Leads the Way
Delhi NCR ranks 8th across Asia Pacific region with 3% rent growth in the logistics market, outpacing Mumbai and Bengaluru. Knight Frank report highlights growth in Indian warehousing market rents despite global slowdown.
Logistics MarketIndiaDelhi NcrMumbaiBengaluruKnight FrankWarehousing MarketEcommerceImportexportReal Estate NewsAug 26, 2024
According to a report by Knight Frank, the annual rent growth in the logistics market across the Asia-Pacific (APAC) saw just 2.4 per cent YoY between January to June, i.e., H1 2024. This is significantly less as compared to H1 of 2023 when the same market grew by 6.2 per cent. However, Indian markets are bucking the trend, with Delhi-NCR leading the way.
Delhi-NCR has shown a growth of 3 per cent in rental rates, the highest compared to the other two key markets Mumbai and Bengaluru. Mumbai witnessed a 2.3 per cent growth while Bengaluru had approximately 2.3 per cent growth in rental yield. The outlook for the next 6 months is encouraging for the entire country.
The city's rent grew at 3 per cent YoY at Rs 20.80 sq ft per month with 15.7 per cent vacancy in the market. Mumbai secured the 11th spot with annual rental growth at 2.3 per cent YoY and a drop in vacancy level to 9.4 per cent in H1 2024 from 10.3 per cent in the previous year. Bengaluru ranked 12th based on annual rental growth in H1 2024, rent grew at 2.3 per cent YoY to Rs 22 sqft per month and vacancy was at 21.1 per cent.
The increase in Indian warehousing market rents has been consistent after the pandemic due to an increased occupier demand in FY 2023. Despite a slowdown in occupier activity, the rent growth in Bengaluru, Mumbai and NCR in H1 2024 was maintained at the levels seen at the end of H1 2023.
Frequently Asked Questions
What is the annual rent growth in the logistics market across the Asia-Pacific (APAC) in H1 2024?
2.4 per cent YoY
Which city has shown the highest growth in rental rates in India?
Delhi-NCR with 3 per cent growth
What is the outlook for the Indian logistics market in the next 6 months?
Encouraging
Which sector has driven the growth in Indian warehousing market rents?
Manufacturing sector
What is the vacancy rate in the Delhi-NCR logistics market?
15.7 per cent
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