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13 High-Activity Clusters to Dominate 70-80% of India's Industrial, Warehousing Market

Thirteen high-activity clusters in India are projected to command 70-80% of the industrial and warehousing market in the coming years. These clusters, identified based on strong demand-supply fundamentals, have each seen over 4 million sq ft of cumulative leasing and supply since 2021. The clusters are spread across major consumption centers, including Chennai, Delhi NCR, Bengaluru, Pune, Mumbai, Kolkata, Ahmedabad, and Hyderabad. Third-party logistics, engineering, and e-commerce are the primary demand drivers, accounting for nearly two-thirds of Grade A space uptake.

Key Points: 13 Clusters to Dominate 70-80% of India's Industrial Market

  • 13 high-activity clusters to dominate 70-80% of industrial and warehousing activity
  • Clusters spread across Chennai, Delhi NCR, Bengaluru, Pune, Mumbai, Kolkata, Ahmedabad, Hyderabad
  • Grade A stock reaches 300 million sq ft, double 2021 levels
  • 3PL, engineering, e-commerce drive two-thirds of Grade A space uptake
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13 high-activity clusters to dominate 70-80 pc of industrial, warehousing activity in India

Thirteen high-activity clusters in India are set to command 70-80% of industrial and warehousing activity, driven by strong demand-supply fundamentals and Grade A space growth.

"These high-activity clusters will continue to drive 70-80 per cent of the overall demand and supply - Vijay Ganesh, Colliers India"

New Delhi, May 14

Thirteen high-activity clusters, which together dominate industrial and warehousing activity across a broader universe of 40 clusters in India, are likely to command 70-80 per cent of the market in the coming years, a report showed on Thursday.

India's industrial and warehousing market has emerged as one of the best-performing real estate asset classes, marked by rising scale and Grade A stock touching 300 million square feet - almost twice the inventory levels of 2021, said the Colliers India report.

The 13 high-activity clusters have been identified based on strong demand-supply fundamentals, each witnessing over 4 million sq ft of cumulative leasing and fresh supply, respectively, since 2021.

Interestingly, these high-activity clusters are fairly spread across major consumption centres, with three in Chennai, two each in Delhi NCR, Bengaluru and Pune and one each in Mumbai, Kolkata, Ahmedabad and Hyderabad.

"The 13 high-activity clusters account for nearly three-fourths of the Grade A space uptake and new supply in India, cumulatively witnessing close to 130 million sq ft of demand and supply each during the last five years," said Vijay Ganesh, Managing Director, Industrial and Logistics Services, Colliers India.

"In the coming years, these high-activity clusters will continue to drive 70-80 per cent of the overall demand and supply, alongside gradual emergence of new hubs supported by ongoing structural changes in industrial and warehousing landscape," he noted.

Third-party logistics (3PL), followed by the engineering and e-commerce segments, continue to drive demand in India's industrial and warehousing market, together accounting for nearly two-thirds of the Grade A space uptake in the last five years.

"Going ahead, we envisage a continued increase in institutional-grade assets across these high-activity clusters, alongside a growing investor focus on expanding into other emerging markets," said Vimal Nadar, National Director and Head, Research, Colliers India.

- IANS

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Reader Comments

P
Priya S
Interesting how Mumbai has only one cluster despite being the financial capital. Guess real estate is too expensive there for large warehouses. The 3PL sector driving demand makes sense with e-commerce boom, but what about smaller cities? My hometown in Madhya Pradesh has great connectivity but no developer interest. Need more decentralisation, yaar!
V
Vikram M
As someone who works in Bengaluru's warehousing sector, I can confirm these clusters are game-changers. But the report misses the elephant in the room: land acquisition issues and NIMBY protests delay every project by 2-3 years. Also, why only Grade A stock? 60% of India's warehousing is still unorganised godowns. The real growth will come when we upgrade that. Still, 130 million sq ft in 5 years is progress 👍
S
Sarah B
Coming from the US, it's fascinating to see how India's warehousing market is evolving - 300M sq ft Grade A is impressive growth from 2021 levels. But the concentration in 13 clusters seems risky; what if one region faces a monsoon disaster or policy change? Diversification into emerging hubs like those in Gujarat or Tamil Nadu's secondary cities would be wise. The 3PL focus is smart though - Amazon's India operations must love this!
R
Rohit P
Ek baat toh clear hai - warehousing is the next big thing after IT in Indian real estate! The Colliers data shows Chennai, Pune, and NCR are really cashing in. But I wish the government would also look at Tier-2 cities like Lucknow or Jaipur where land is cheaper and connectivity improving. Aur yeh 'Grade A stock' obsession - bhai, sabse pehle hamein roads aur electricity toh theek karo warehouse clusters mein!

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