Business

Delhi-NCR Among Top 10 APAC Markets For Logistics Rental Growth In H1 2024

Delhi-NCR has emerged as a standout performer in the Asia-Pacific logistics market, securing a spot among the top 10 markets for annual rental growth in the first half of 2024, according to a report released by Knight Frank on Thursday.

With a notable rental growth rate of 3% year-on-year, Delhi-NCR ranks eighth in the region for logistics rental increases.

Monthly rents in the area are now at Rs 20.80 per square foot, while the market faces a vacancy rate of 15.7%.

This growth surpasses the rental increases recorded in Mumbai and Bengaluru, both at 2.3%.

The report highlights a steady outlook for logistics rentals across major Indian cities, driven by persistent demand for warehousing and logistics facilities.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, attributed the growth to the government’s focus on boosting the manufacturing sector.

“The emphasis on manufacturing has spurred significant demand, complemented by the sustained role of third-party logistics providers. This has bolstered overall market volumes,” Baijal explained.

Indian Warehousing Market Sees Steady Rental Growth Amid APAC Slowdown

The Indian warehousing market has experienced substantial rental increases since the pandemic, largely due to a surge in occupier demand reaching peak levels through FY 2023.

Despite a recent slowdown in occupier activity, rental growth in Bengaluru, Mumbai, and Delhi-NCR has continued at the same pace as the previous half-year.

Overall, the Asia-Pacific logistics market saw a more modest rental growth of 2.4% year-on-year in H1 2024, a sharp decline from the 6.2% increase observed in the same period last year.

The slowdown is attributed to challenging conditions in major Chinese cities like Beijing and Shanghai, despite 13 of the 17 tracked cities reporting rental increases.

In contrast, Singapore’s logistics sector has thrived, with rents rising by 6.7% in six months and 10.8% year-on-year, fueled by strong manufacturing activity and sustained PMI (Purchasing Managers’ Index) expansion for ten consecutive months.

Also Read: Indian Equity Markets Surge On Positive US Market Cues

Mankrit Kaur

Recent Posts

Pt Deen Dayal Upadhyaya Sanatan Dharma Vidyalaya To Celebrate 55th Annual Day With Vision 2047 Theme

Pt Deen Dayal Upadhyaya Sanatan Dharma Vidyalaya to celebrate its 55th Annual Day on October…

59 mins ago

PM Modi Welcomes First Phase Of Trump’s Gaza Peace Plan; Hails Netanyahu’s Leadership

PM Modi welcomes agreement on the first phase of Trump’s Gaza peace plan, praises PM…

1 hour ago

UK PM Starmer Commends PM Modi’s Vision For India’s Economic Rise

UK PM Keir Starmer praises PM Modi’s vision to make India the world’s third-largest economy…

3 hours ago

PIB Fact Check: Kanpur Scooter Blast Linked To Firecracker Storage; Not Terror Group

Kanpur scooter blast caused by illegal firecracker storage, not Khalistan Zindabad Force, confirms PIB.

3 hours ago

PM Modi, UK PM Starmer Enchanted By Classical Rendition Of ‘Sapphire’

PM Modi and UK PM Keir Starmer enjoy a classical rendition of Ed Sheeran and…

4 hours ago

Amit Shah Reviews J&K Security; Vows Full Freedom For Forces To Crush Threats

Amit Shah assures full freedom for J&K security forces to tackle threats, highlighting coordinated anti-terror…

4 hours ago