Thirteen high-activity clusters are set to lead India’s industrial and warehousing sector, capturing 70-80% of the market share in the near future, as per a recent report. The country’s industrial and warehousing segment has shown strong growth, with Grade A stock reaching 300 million square feet, doubling the levels from 2021, according to Colliers India. These clusters, identified based on robust demand-supply dynamics, have each seen over 4 million sq ft of leasing and fresh supply since 2021.
These high-activity clusters are strategically located in key consumption hubs, with three in Chennai, two each in Delhi NCR, Bengaluru, and Pune, and one each in Mumbai, Kolkata, Ahmedabad, and Hyderabad. Managing Director of Industrial and Logistics Services at Colliers India, Vijay Ganesh, highlighted that these clusters have accounted for the majority of Grade A space uptake and new supply in India, totaling around 130 million sq ft each over the past five years.
Vijay Ganesh further emphasized that these clusters will continue to drive the bulk of demand and supply, with new hubs gradually emerging due to structural changes in the industrial and warehousing landscape. The industrial and warehousing market in India has been primarily fueled by third-party logistics (3PL), engineering, and e-commerce sectors, jointly contributing to almost two-thirds of Grade A space uptake in the last five years.
Looking ahead, Vimal Nadar, National Director and Head of Research at Colliers India, anticipates a rise in institutional-grade assets within these high-activity clusters, with a growing investor interest in expanding into emerging markets.
