Summary of this article
Delhi-NCR logistics rents rose 5.2% in H1 2026.
Vacancy declined to 14.7% amid strong occupier demand.
Emerging micro-markets could gain residential importance.
The residential market in Delhi-NCR is being increasingly shaped by growth beyond its traditional housing hubs. Emerging micro-markets benefit from improving connectivity, expanding employment opportunities and stronger commercial activity. The region has been evolving in a logistical landscape that could further support this shift, with Delhi-NCR recording one of the strongest logistics rental growth rates in the Asia-Pacific region, as per the latest report by Knight Frank, namely, Asia-Pacific Logistics Highlights H1 2026 activity. Delhi-NCR has recorded a 5.2 per cent year-on-year increase in prime logistics rents in H1 2026, placing the city in the top 10 APAC markets for annual rental growth. Prime logistics rents show that rental activity grew by Rs 22.30 per square foot per month. At the same time, vacancy declined to 14.7 per cent; this indicates that there’s strong demand in the locality for housing.
“A critical trend is the growth of integrated townships and mixed-use developments that provide community schools, healthcare, retail and recreational amenities. This trend has shifted buyer focus from investing in a house to investing in a lifestyle. Property values in key areas of NCR are reaching their peak, and new subdivided markets are presenting stronger appreciation potential and greater affordability. The next stage of NCR's growth in residential real estate will be defined outside of the city centres for both developers and investors. Well-linked and infrastructure-ready subdivided markets will define growth prospects, while also offering better living standards,” says Aman Gupta, Director, RPS Group.
Extended Impact On Residential Markets
While logistics growth is primarily a commercial real estate denominator, its impact can extend to residential markets. The expansion of warehouses, distribution ecosystems, manufacturing and e-commerce activity can create employment clusters in various areas. This increases the demand for housing in locations that offer proximity to the emerging employment centres.
“India’s logistics sector continues to demonstrate strong structural resilience, supported by sustained manufacturing activity, domestic consumption and the ongoing diversification of supply chains. The healthy rental growth recorded across Mumbai, Delhi-NCR, and Bengaluru reflects sustained occupier demand, even as the market becomes increasingly selective about location, connectivity and asset quality. With occupiers placing greater emphasis on operational efficiency and modern, institutional-grade facilities, we expect India’s logistics real estate market to remain on a steady growth trajectory in the near to medium term,” says Shishir Baijal, International Partner, Chairman and MD, Knight Frank India.
For NCR, this creates an opportunity for peripheral and emerging residential micro-markets to gain greater prominence. As commercial activity spreads beyond business hubs, homebuyers may look for locations that combine affordability, accessibility, amenities and transport infrastructure.
