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
Tags:
Related News Articles
Shiv Sena (UBT) Wins Big in Maharashtra MLC Elections, Boosts Morale Ahead of Assembly Polls
Shiv Sena (UBT) has won both the Mumbai seats in the recently conducted Maharashtra Legislative Council (MLC) polls, a major boost ahead of the assembly elections.
Real Estate Insolvencies: IBC Rescues 2.5 Times More Companies Than Liquidated
The Insolvency and Bankruptcy Code (IBC) has led to successful resolution of 46% cases admitted in the real estate sector, with 645 companies rescued and 261 ending up in liquidation.
MahaRERA Puts Real Estate Project Grading on Hold in Maharashtra
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has decided to put the grading of real estate projects on hold due to legal concerns. The Bombay High Court had earlier inquired about the possibility of MahaRERA rating developers to help homebu
CREDAI-MCHI Property Expo 2025: A Landmark Moment for Real Estate Inclusion
The CREDAI-MCHI Property Expo 2025 in Mumbai marks a groundbreaking shift by becoming the first mainstream real estate event in India to champion inclusivity and diversity in the industry. This event sets a new standard, emphasizing that real estate is fo
Dharavi Redevelopment Master Plan: ₹3 Lakh Crore Investment and Tenement Survey Update
The Dharavi redevelopment master plan is set to be finalized within a month, with an estimated investment of ₹3 lakh crore. CEO SVR Srinivas provides updates on the project's progress and challenges.
Greenfield Real Estate Projects See 2-4% Rise in Construction Costs in 2024
Construction costs for greenfield real estate projects in India have increased by 2-4% annually in 2024, according to a recent report by CBRE and ET Real Estate. This rise is attributed to various factors including increased material costs, labor rates, a