Business News | High-activity Clusters Set to Command Up to 80% of India's Warehousing Demand; Chennai Tops List: Colliers Report
Get latest articles and stories on Business at LatestLY. High-activity clusters are projected to command 70-80 per cent of India's Grade A industrial and warehousing demand and supply in the coming years, with Chennai dominating the national landscape with three such high-activity clusters.
New Delhi [India], May 14 (ANI): High-activity clusters are projected to command 70-80 per cent of India's Grade A industrial and warehousing demand and supply in the coming years, with Chennai dominating the national landscape with three such high-activity clusters.
According to a report by Colliers India, these clusters represent the core of the country's logistics expansion, as existing hubs scale further to strengthen India's position within the wider Asia-Pacific region.
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High-activity clusters refer to micro markets with equally high cumulative demand & supply of more than 4 million sq ft each since 2021.
The industrial and warehousing market has emerged as one of the best-performing real estate asset classes in the country. As per the report, total Grade A stock has now reached approximately 300 million sq ft, marking a significant jump that is nearly double the inventory levels recorded in 2021. This growth is primarily concentrated within 13 high-activity clusters, which dominate activity across a broader universe of 40 identified clusters nationwide.
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These 13 primary clusters accounted for roughly 75 per cent of the cumulative demand and fresh supply seen since 2021. Currently, they boast a collective 215 million sq ft of Grade A stock.
These hubs are strategically distributed across major consumption centres, including three in Chennai, two each in Delhi NCR, Bengaluru, and Pune, and one each in Mumbai, Kolkata, Ahmedabad, and Hyderabad.
"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 catalyse demand," said Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India.
Infrastructure-led growth remained the primary driver for these clusters. Bhiwandi in Mumbai remained the largest industrial and warehousing cluster in India with 42 million sq ft of Grade A stock. Its proximity to the Jawaharlal Nehru Port and access to the Mumbai-Ahmedabad and Mumbai-Nashik expressways gives it a distinct advantage. Notably, the inventory in Bhiwandi alone exceeded the entire warehousing stock of several major cities, including Hyderabad, Ahmedabad, and Bengaluru.
In the north, Farukh Nagar and NH 48 in Delhi NCR maintained high uptake due to their proximity to industrial hubs and connectivity provided by the Western and Eastern Dedicated Freight Corridors.
Meanwhile, southern clusters like NH 16 and Oragadam in Chennai benefited from international sea-port access and the Bengaluru-Chennai Expressway, drawing demand from the automobile, e-commerce, and 3PL sectors.
"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," says Vimal Nadar, National Director & Head, Research, Colliers India.
While high-activity clusters maintain their lead, the report noted that emerging Tier II markets such as Bhopal, Bhubaneswar, Coimbatore, and Jaipur are poised for heightened traction. These locations are expected to function as critical supply-chain nodes as e-commerce and export-oriented manufacturing continue to expand across the country. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)