Thirteen high-activity clusters are set to command 70-80 per cent of India's industrial and warehousing market in the coming years, according to a Colliers India report released on Thursday, 14 May. The findings, drawn from an analysis of 40 clusters across the country, underscore a sharp concentration of Grade A real estate activity in a handful of strategically located hubs.

Key Findings from the Report

India's industrial and warehousing sector has emerged as one of the best-performing real estate asset classes in recent years. Grade A stock has reached 300 million square feet — nearly twice the inventory levels recorded in 2021, reflecting the pace of institutional investment and occupier demand.

The 13 high-activity clusters were identified on the basis of strong demand-supply fundamentals, with each cluster recording over 4 million sq ft of cumulative leasing and fresh supply since 2021. Collectively, these clusters account for close to 130 million sq ft of both demand and supply over the past five years — roughly three-fourths of Grade A space uptake and new supply nationally.

Where the Clusters Are Located

The 13 clusters are 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 geographic spread reflects the alignment of warehousing activity with large urban markets and manufacturing corridors.

What Is Driving Demand

Third-party logistics (3PL), followed by the engineering and e-commerce segments, continue to be the primary demand drivers. Together, these three segments account for nearly two-thirds of Grade A space uptake over the last five years. The sustained growth of e-commerce and the formalisation of supply chains have been key structural tailwinds for the sector.

What Industry Leaders Said

Vijay Ganesh, Managing Director, Industrial and Logistics Services, Colliers India, said the 13 clusters have cumulatively witnessed close to 130 million sq ft of demand and supply each during the last five years. '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.

Vimal Nadar, National Director and Head of Research, Colliers India, said the firm anticipates 'a continued increase in institutional-grade assets across these high-activity clusters, alongside a growing investor focus on expanding into other emerging markets.'

What Comes Next

Beyond the dominant 13, the report points to a gradual emergence of new hubs as structural changes in India's industrial and logistics landscape continue to unfold. Investor interest is expected to broaden, with institutional capital increasingly looking at Tier-2 markets to diversify exposure. The sector's trajectory will depend on infrastructure development, policy continuity, and the pace of supply chain formalisation across the country.