The report
highlighted that large infrastructure projects such as the Delhi-Mumbai
Industrial Corridor (DMIC), Western Dedicated Freight Corridor (WDFC) and
Eastern Dedicated Freight Corridor (EDFC) are driving warehouse demand by
strengthening connectivity between Delhi and other parts of India.
Net demand surged 80% year-on-year in H1 2025 to 4.13
million sq ft, with Grade A facilities accounting for 88% of total demand. The Delhi-NH8 belt remained the most
active, supported by demand from 3PL/logistics operators, light manufacturing
(auto, engineering, ancillaries), FMCG, e-commerce and retail players.
On the supply side, the market added 4.66 million sq
ft in H1 2025, with strong traction from institutional developers and
investors. This surge, however, pushed vacancy rates up to 21.4% as supply
outpaced demand.
Despite rising
vacancy, rents climbed 5.3% year-on-year in H1 2025, reflecting the preference
for high-quality Grade A spaces. JLL expects rentals to increase further in the
coming years, supported by escalating land prices, upcoming infrastructure
projects, and continued institutional investment.