13 high-activity clusters likely to command 70-80% of industrial & warehousing activity in the coming years: Colliers India

(MENAFN- sloughpr) 14 May 2026: Industrial & warehousing clusters: A snapshot
Cluster classification* Number of clustersStoc in msf & share in % (Q1 202 ) Demand in sf & share in % (2021-Q1 2 26) New supply i msf & share in % (2021-Q1 2026)
High-activity 13214.7 msf (72%)128.0 msf (75%)136.6 msf (74%)
Medium-activity 1052.9 msf (18%)27.1 msf (16%)36.0 msf (20%)
Low-activity 1731.6 msf (10%)14.8 msf (9%)11.5 msf (6%)
Overall industrial & warehousing market40299.2 msf169.9 msf184.1 msf
Source: Colliers
Note: Data for warehousing / industrial sheds pertains to Grade A buildings | Absorption does not include lease renewals, pre-commitments and deals where only a Letter of Intent has been signed | Data pertains to the top 8 cities – Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai and Pune
*Cluster classification: High-activity clusters refer to micro markets with equally high cumulative demand & supply of more than 4 million sq ft each since 2021| Medium-activity clusters refer to micro markets where either cumulative demand & supply or both are in the range of 2-4 million sq ft since 2021 | Low- activity clusters refer to micro markets where cumulative demand & supply are lower than 2 million sq ft each since 2021

High-activity clusters benefiting from infrastructure-led growth
Across India, high-activity clusters have been benefitting from infrastructure-led growth, improved connectivity and logistics linkages, driving scale and attractiveness. Bhiwandi in Mumbai continues to be India’s largest industrial & warehousing cluster with about 42 million sq ft of Grade A stock, owing to its proximity to Jawaharlal Nehru Port and seamless access to key arterial corridors such as Mumbai-Ahmedabad & Mumbai-Nashik expressways. Interestingly, Grade A inventory in Bhiwandi alone exceeds the entire warehousing stock of cities like Hyderabad, Ahmedabad, Kolkata, Bengaluru and Pune.
Similarly, warehousing space uptake in Farukh Nagar and NH 48 in Delhi NCR continues to be driven by their proximity to industrial hubs of North India and improvements in connectivity via Western & Eastern Dedicated freight corridors, Kundli-Manesar-Palwal & Delhi-Mumbai Expressways. Flagship infrastructure projects augment the regional distribution capabilities of key industrial & warehousing clusters of Delhi NCR. In South India, key clusters like NH 16, NH 48 & Oragadam in Chennai and Hoskote-Narsapura-Soukya Road in Bengaluru benefit from improved regional linkages via Bengaluru-Chennai Expressway and rising demand from large Third-party logistics (3PL), Engineering, E-commerce and Automobile occupie s. Additionally, the presence of an international sea-port adds to the industrial & warehousing traction seen in high-activity clusters of Chennai.

13 high-activity industrial & warehousing clusters across India's top 8 cities
ClusterCityStock as of Q1 2026 (msf)Demand 2021-Q1 2026 (msf)New Supply 2021-Q1 2026 (msf)Vacancy as of Q1 2026 (%)Rents (INR/sf/month) as of Q1 2026
Bhiwandi Mumbai 42.122.020.322.2%15-28
Farukh NagarDelhi NCR31.516.922.921.4%24-27
NH 48 (Delhi NCR)Delhi NCR26.612.114.319.6%21-28
ChakanPune22.312.112.77.7%23-34
NH 16Chennai15.69.010.218.6%20-26
OragadamChennai14.48.89.27.4%26-33
Hoskote-Narsapura-Soukya RoadBengaluru13.39.89.822.1%20-30
NH 48 (Chennai)Chennai12.39.76.714.1%22-30
Dhulagarh - After TollKolkata10.65.510.415.9%16-22
Changodar - BagodaraAhmedabad8.75.75.59.0%15-23
Nelamangala-Peenya-DabaspeteBengaluru6.04.15.033.6%20-45
TalegaonPune5.86.85.35.5%24-29
NorthHyderabad5.55.54.311.4%16-27
Source: Colliers
Note: Data for warehousing / industrial sheds pertains to Grade A buildings | Absorption does not include lease renewals, pre-commitments and deals where only a Letter of Intent has been signed | Data pertains to the top 8 cities – Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai and Pune | Rents are on built up area and do not include common area maintenance (CAM) or taxes.
Cluster definition: 1. Bhiwandi includes Mankoli, Vadape, Padgha, Vashere | 2. Farukh Nagar includes Kulana, Farukhnagar, Badli, Jhajjar, Bhaproda, Luhari | 3. NH 48 (Delhi NCR) includes Gurugram -Binola, Pataudi Road, Jamalpur- Panchgaon Road, Bilaspur-Tauru Road, Dharuhera | 4. Chakan includes Chakan, Varale, Khalumbre, Kharabwadi, Chimbali, Kurali, Nighoje, Wasuli, Sawardari, Bhamboli, etc. | 5. NH 16 includes Chennai Kolkata Highway: Gummidipoondi, Sricity, Redhills, Poochiathipedu, Periyapalayam, Vishnuvakkam | 6. Oragadam includes Oragadam, Vallam | 7. Hoskote-Narsapura-Soukya Road includes Hoskote, Nidagatta, Tavarekere, Narsapura, Malur, Soukya Road, etc. | 8. NH 48 (Chennai) includes Chennai Bengaluru Highway: Irungattukottai, Sriperumbudur, Mannur, Mappedu, Polivakam, Mevalurkuppam | 9. Dhulagarh-After Toll includes Amta, Uluberia, Bagnan | 10. Changodar-Bagodara includes Changodar, Bavla, Bhayala | 11. Nelamangala-Peenya-Dabaspete includes Nelamangala, T Begur, Makali, Dabaspete, Peenya, etc. | 12. Talegaon includes Talegaon, Vadgaon, Sudhawadi, Navlakh Umbare & Badhalwadi | 13. North-Hyderabad includes Bowrampet, Devaryamjal, Bandlamailaram, Shamirpet, Jeedipalli, Manoharabad, Turkapally, etc.
“Ind’a’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. 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 & supply each during the last five years. Moreover, 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. In the coming years, these high-activity clusters will continue to drive 70-80% of the overall demand and supply, alongside gradual emergence of new hubs supported by ongoing structural changes in industrial & warehousing landsc”pe,” says Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India.
Bhiwandi drives 3PL Demand; Oragadam & Farukh Nagar lead Engineering and ECommerce
Third-party logistics (3PL) followed by the Engineering and E-commerce segments, continue to drive demand in India’s Industrial & warehousing market, together accounting for nearly two-thirds of the Grade A space uptake in the last five years. Of the ~60 million sq ft of cumulative leasing by the 3PL segment since 2021, Bhiwandi in Mumbai has emerged as the most prominent cluster, accounting for over one-fifth of the segme’t’s demand, followed by Farukh Nagar (Delhi NCR) and NH 16 (Chennai). This underscores the criticality of well-connected logistics hubs in supporting large-scale 3PL requirements.
In the Engineering segment, demand is largely driven by manufacturing-led clusters, with Oragadam & NH 48 in Chennai each accounting 13-14% of the seg’ent’s space uptake in the last five years, followed by Chakan in Pune. Meanwhile, leasing by E-commerce firms has been concentrated in Farukh Nagar and Bhiwandi, with these clusters cumulatively accounting for over one-fourth of the s’gment’s overall demand. In the case of the Automobile & Retail segments, Chakan in Pune and Hoskote-Narsapura-Soukya Road in Bengaluru have dominated leasing significantly. Interestingly, Farukh Nagar & Bhiwandi feature amongst the top three clusters across multiple demand segments such as 3PL, E-commerce, Electronics, FMCG and Retail, reinforcing their position as leading warehousing hubs of the country.
Top clusters across demand segments (2021-Q1 2026)
3PLEngineering E-commerceAutomobileElectronics FMCG Retail Others*Total
India: Cumulative demand (msf)60.428.920.614.712.311.99.811.3169.9
13 high- activity clusters: Cumulative demand (msf) 50.719.914.111.28.38.87.17.9128.0
Share of 13 high-activity clusters84%69%68%76%67%74%72%
Top 3 clustersBhiwandi (Mumbai)
Farukh Nagar (Delhi-NCR)
NH-16 (Chennai)Oragadam (Chennai)

NH 48
(Chennai)

Chakan (Pune)Farukh Nagar (Delhi-NCR)
Bhiwandi (Mumbai)
NH 48 (Delhi-NCR)Chakan
(Pune)

Hoskote-Narsapura-Soukya Road (Bengaluru)

NH 48
(Delhi-NCR)Farukh Nagar (Delhi-NCR)
Bhiwandi (Mumbai)
Changod–r – Bagodara
(Ahmedabad)Bhiwandi (Mumbai)

Farukh Nagar (Delhi-NCR)

NH 48
(Delhi-NCR)Hoskote-Narsapura-Soukya Road (Bengaluru)
Farukh Nagar (Delhi-NCR)
Bhiwandi (Mumbai)
Source: Colliers

Note: Data for warehousing / industrial sheds pertains to Grade A buildings | Absorption does not include lease renewals, pre-commitments and deals where only a Letter of Intent has been signed | Data pertains to the top 8 cities–– Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai and Pune | FMCG: Fast-moving Consumer Goods | *Others include Healthcare, Furniture, Paint, Life sciences, Chemical companies etc.
“Nearly three-fourths of the large-sized deals (200,000 sq ft and above) in ’ndia’s industrial & warehousing market is concentrated in high-activity clusters. Of the cumulative ~70 million sq ft of large transactions in the last 5 years, Bhiwandi & Farukh Nagar together account for almost one-third share, driven by 3PL & E-commerce demand. Notably, other clusters such as NH 16 & Oragadam in Chennai, Hoskote-Narsapura-Soukya Road in Bengaluru, NH 48 in Delhi NCR, Dhulagarh (After Toll) in Kolkata and Changodar-Bagodara in Ahmedabad have also witnessed multi-fold leasing growth during the same period, highlighting the growing traction of large-format warehouses across the country. 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 m”rkets,” says Vimal Nadar, National Director & Head, Research, Colliers India.
Average rentals likely to firm up by 5-10% YoY across key clusters
Rental growth has been pronounced across most high-activity clusters, with around 15-35% increase in average rentals over the last five years. In fact, prominent clusters in Delhi NCR, such as Farukh Nagar & NH 48, have seen close to 30% growth in average rentals over the last five years, supported by occupier expansion across key demand segments. In the coming years, rentals are expected to firm up by 5-10% on a YoY basis across most high-activity clusters, driven by growing preference for institutional-grade assets and ongoing infrastructure developments.
High-activity clusters set to command 70-80% of demand in coming years
With existing high-activity clusters expected to scale further, India is likely to strengthen its position as a notable industrial & warehousing market in the wider APAC region. Looking ahead, while these high-activity clusters are likely to continue commanding 70-80% of India’s Grade A industrial & warehousing demand and supply additions each, the volume of transactions in emerging and nascent clusters is set to grow at a much faster pace amidst ongoing structural shifts and growing influx of Grade A assets in the relatively emerging markets. Supported by continued government impetus on manufacturing and logistics, emerging Tier II markets such as Bhopal, Bhubaneswar, Coimbatore, Indore, Jaipur, Surat, Visakhapatnam, etc., are poised for heightened traction. These locations will increasingly play a pivotal role and act as critical supply-chain nodes supported by E-commerce expansion and export-oriented growt .

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