India’s Warehousing Growth Concentrated In 13 Key Clusters: Colliers Report

New Delhi, May 14 (KNN) Around 13 high-activity clusters are expected to account for 70-80 percent of India’s industrial and warehousing demand and supply in the coming years, according to a report by Colliers India.

The report highlighted that these clusters have already driven nearly 75 percent of India’s total industrial and warehousing demand and new supply over the last five years, with cumulative leasing and fresh supply of nearly 130 million square feet each since 2021. 

Together, these clusters currently hold around 215 million square feet of Grade A stock, out of India’s total warehousing inventory of nearly 300 million square feet, which has almost doubled since 2021.

13 Clusters Dominate India’s Warehousing Growth 

Chennai emerged as the leading market with three high-activity clusters, followed by two each in Delhi NCR, Pune and Bengaluru. Meanwhile, Mumbai, Kolkata, Ahmedabad and Hyderabad each have one major cluster.

The report noted that infrastructure upgrades, improved connectivity and logistics corridors are driving demand in these hubs.

Bhiwandi, near Mumbai, remains India’s largest warehousing cluster with nearly 42 million square feet of Grade A stock, benefiting from proximity to Jawaharlal Nehru Port and major expressways. 

Its warehousing stock alone exceeds the total inventory of several major cities, including Hyderabad, Ahmedabad, Kolkata, Bengaluru and Pune.

In North India, Farukh Nagar and NH-48 in Delhi NCR have emerged as major logistics hubs due to improved connectivity through the Western and Eastern Dedicated Freight Corridors, along with the Kundli-Manesar-Palwal and Delhi-Mumbai Expressways.

In southern markets, clusters such as Oragadam, NH-16 in Chennai and Hoskote-Narsapura-Soukya Road in Bengaluru are witnessing rising demand from third-party logistics (3PL), engineering, e-commerce and automobile companies.

Logistics, E-Commerce And Auto Drive Demand  

According to Colliers India, the 3PL sector remained the largest demand driver, accounting for nearly 60 million square feet of leasing since 2021, with Bhiwandi contributing over one-fifth of that demand. Farukh Nagar and NH-16 in Chennai also emerged as key hubs for logistics players.

The engineering sector has seen strong demand in Oragadam and NH-48 in Chennai, while e-commerce leasing has largely been concentrated in Farukh Nagar and Bhiwandi. 

Clusters such as Chakan in Pune and Hoskote in Bengaluru have also witnessed significant demand from automobile and retail companies.
The report added that rental values across key warehousing hubs have increased by 15–35 percent over the last five years, with Delhi NCR clusters recording nearly 30 percent growth. 

Rentals are expected to rise further by 5–10 percent annually due to growing demand for institutional-grade assets and continued infrastructure expansion.

Looking ahead, Colliers India said emerging Tier-II cities such as Bhopal, Bhubaneswar, Coimbatore, Indore, Jaipur, Surat and Visakhapatnam are likely to witness faster growth as India’s manufacturing and logistics ecosystem expands.

(KNN Bureau)