India’s prime logistics hubs have shown an interesting trend in the first half of 2025. Despite a noticeable increase in vacancies, the rental values for logistics spaces have surged, reflecting a strong market resilience.
Rising Vacancies Across Major Hubs
Many of the country’s key logistics centers report a rise in available space, signaling that demand and supply dynamics are shifting. This rise could be attributed to various factors such as changing business needs or expansions in logistics infrastructure.
Surge in Rental Values
Contrary to what might be expected with rising vacancies, rental values have grown by 3.4%. This indicates that the demand for quality spaces or prime locations remains high, keeping rental prices buoyant.
Factors Influencing the Market
- Increased demand for modern logistics facilities with advanced technology integrations.
- Strategic importance of India’s logistics hubs in the global supply chain.
- Limited availability of prime logistics spaces despite higher overall vacancies.
Looking Forward
The logistics rental market in India is expected to stay dynamic, with possible fluctuations in vacancy rates but continued rental growth driven by the country’s expanding economy and infrastructure development.
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