These 13 clusters have together accounted for around 75% of India’s cumulative industrial and warehousing demand and new supply since 2021, according to a report by Colliers India.
The sector has emerged as one of the strongest-performing real estate asset classes in recent years, supported by improving logistics infrastructure, rising institutional investments and expansion of manufacturing and supply-chain networks across major consumption centres.
India’s Grade A industrial and warehousing stock stood at 299.2 million sq ft in the first quarter of 2026, almost twice the inventory levels of 2021. Of this, high-activity clusters accounted for 214.7 million sq ft, or 72% of the total stock.
The identified clusters collectively witnessed 128.0 million sq ft of cumulative demand and 136.6 million sq ft of new supply between 2021 and Q1 2026. Chennai accounted for three of the 13 high-activity clusters, while Delhi NCR, Pune and Bengaluru accounted for two clusters each. Mumbai, Kolkata, Ahmedabad and Hyderabad had one cluster each.
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“India’s industrial & warehousing market is entering an accelerated growth phase with high-activity clusters anchoring market momentum, on the back of policy support, enhancements in multi-modal connectivity, proximity to consumption centers, and expanding manufacturing & logistics landscape,” said Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India.
According to him, continued infrastructure development through logistics parks, industrial & freight corridors, along with sector-focused initiatives in textile, semiconductor & EV parks, etc. are expected to further catalyze demand.Bhiwandi near Mumbai remained the country’s largest industrial and warehousing cluster with 42.1 million sq ft of Grade A stock. The cluster has benefited from proximity to Jawaharlal Nehru Port and connectivity through the Mumbai-Ahmedabad and Mumbai-Nashik expressways.
Farukh Nagar and NH 48 in Delhi NCR continued to attract warehousing demand due to connectivity through the Western and Eastern Dedicated Freight Corridors, Kundli-Manesar-Palwal Expressway and Delhi-Mumbai Expressway.
In southern markets, clusters such as NH 16, NH 48 and Oragadam in Chennai and Hoskote-Narsapura-Soukya Road in Bengaluru continued to witness demand from third-party logistics (3PL), engineering, e-commerce and automobile occupiers.
Third-party logistics companies accounted for 60.4 million sq ft of cumulative leasing since 2021, with Bhiwandi emerging as the leading cluster for 3PL demand, followed by Farukh Nagar and NH 16 in Chennai.
Engineering demand remained concentrated in Oragadam and NH 48 in Chennai, while e-commerce leasing activity was led by Farukh Nagar and Bhiwandi. Chakan in Pune and Hoskote-Narsapura-Soukya Road in Bengaluru continued to dominate leasing by automobile and retail occupiers.
The report said rentals across most high-activity clusters increased 15-35% over the last five years and are expected to rise 5-10% annually in the coming years, supported by infrastructure upgrades and rising preference for institutional-grade assets.
