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.
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