Delhi logistics vacancy forecast to remain below 15% through 2030 as infrastructure investment and e-commerce growth support absorption, according to JLL.
Temporary Rise in Vacancy
Vacancy rates have ticked up recently, reaching 20.4% in the first half of 2026 from 19.5% in 2025. JLL notes that this increase occurred because speculative supply outpaced demand during this period. The brokerage expects this trend to be temporary, as quality logistics facilities become more desirable and existing vacant space is absorbed in coming quarters.
Net absorption in the market recorded 3.7 million sq ft in H1 2026, a decline of 10% year-on-year. This drop coincided with global geopolitical uncertainty, yet JLL argues the underlying demand remained resilient. The firm believes the impact of these geopolitical issues is likely to be short-lived.
Leading Absorption Clusters
Delhi-NH8 and Ghaziabad-Noida led the absorption figures. These areas benefit from their strategic positions along the Western and Eastern Dedicated Freight Corridors. By occupier segment, third-party logistics companies accounted for the largest share of take-up, followed by manufacturing and consumer-led sectors.
New supply increased 18.4% year-on-year to 5.8 million sq ft in H1 2026. Delhi-NH8 led completions, supported by land availability, followed by Ghaziabad-Noida and Sonipat-Hassangarh. JLL stated that these new projects are strengthening the region’s logistics infrastructure capacity.
Rentals and Investment Growth
Warehousing rents rose about 2% year-on-year to INR 23.2 per sq ft per month. With demand increasingly focused on higher-quality facilities and institutional investor interest growing, JLL expects rental growth of 4-5% in the coming quarters. Land price appreciation also supported asset values.
Capital values increased 3.1% year-on-year in H1 2026, while market yields compressed by 10 basis points to 7.7%, according to the report. The brokerage said the movements point to strengthening asset valuations and investor confidence in the logistics sector.
It is unusual for asset valuations to climb while yields compress simultaneously, as this typically suggests a seller’s market where properties are in high demand. In this specific case, the sustained focus on Grade A developments appears to be driving this unique alignment of market forces.
Looking ahead, JLL projects NCR Delhi’s warehousing stock will exceed 120 million sq ft by the end of 2026, driven primarily by Grade A developments and institutional investment. Delhi-NH8 is expected to remain particularly active, supported by the Western Dedicated Freight Corridor.
Infrastructure Impact
JLL highlighted the impact of major infrastructure initiatives including the Delhi-Mumbai Industrial Corridor, Western Dedicated Freight Corridor and Eastern Dedicated Freight Corridor. Improved connectivity to western and eastern India, combined with continued expansion in e-commerce and 3PL activity, is expected to underpin logistics demand and drive the vacancy rate below 15% through 2030.
