Delhi-NCR, Mumbai, Bengaluru among top 10 Asia-Pacific markets for rental growth

Mumbai: Delhi-NCR, Mumbai and Bengaluru were among the top 10 logistics markets for growth in the Asia-Pacific region in the second half of 2024, higher than the regional average, according to a report on Saturday.

The Asia-Pacific (APAC) logistics market saw marginal rental growth of 0.2 per cent in year-on-year (YoY) terms but Delhi-NCR at 2.8 per cent, Mumbai at 2.3 per cent and Bengaluru at 1.5 per cent recorded rental growth higher than regional average (year-on-year), according to Knight Frank’s ‘Asia-Pacific Logistics Highlight H2 2024’ report.

Delhi-NCR is positioned sixth in the APAC logistics market based on annual rental growth.

At Rs 21.07 per square feet per month, the city’s rents grew at 2.8 per cent YoY. The vacancy level in the market now stands at 14.5 per cent, according to the report.

Mumbai is on the seventh position in the APAC logistics market in terms of annual rental growth. With a YoY growth of 2.3 per cent, the city’s rents now stand at Rs 23.94 per sq ft per month. The vacancy level grew to 11.8 per cent in H2 2024.

Bengaluru spotted at 10th rank in the APAC logistics market based on annual rental growth in H2 2024. Rents in the city grew at 1.5 per cent YoY to Rs 22.13 per sq ft per month and vacancy level stood at 18.9 per cent.

“The healthy GDP growth forecast is expected to maintain a dynamic business environment and support occupier activity throughout 2025. With 2 million sqm becoming available in 2025, the anticipated demand is expected to be sufficiently met,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

The government’s focus on the manufacturing sector is proving successful, resulting in healthy demand from this sector.

The robust business environment, diversified warehousing demand, and growing institutional interest are likely to help the market sustain its momentum in the near to medium term, Baijal added.

IANS