These clusters have already accounted for around 75% of leasing activity and new supply since 2021, underlining their dominance in India’s rapidly evolving logistics and industrial real estate landscape.

Market Size Doubles Post-Pandemic

India’s Grade A industrial and warehousing stock has touched ~300 million sq ft as of Q1 2026, nearly doubling from 2021 levels. Of this, nearly 215 million sq ft is concentrated in just 13 high-activity clusters, reflecting strong demand-supply fundamentals and institutional investor interest.

These clusters were identified based on their ability to generate over 4 million sq ft each in both leasing and new supply since 2021.

Chennai Leads, Mumbai’s Bhiwandi Tops Individually

Among cities, Chennai leads with three high-activity clusters, followed by Delhi NCR, Pune, and Bengaluru with two clusters each.

However, on an individual level, Bhiwandi in Mumbai stands out as India’s largest warehousing hub, with:

• 42 million sq ft of Grade A stock
• Strong demand driven by 3PL (third-party logistics) players
• Strategic proximity to JNPT port and major expressways

Remarkably, Bhiwandi alone has more warehousing stock than entire cities like Hyderabad, Ahmedabad, and Kolkata.

Infrastructure Driving Growth

The rise of these clusters is closely tied to infrastructure development, including:

• Dedicated Freight Corridors (DFC)
• Delhi-Mumbai Expressway
• Bengaluru-Chennai Expressway
• Industrial corridors and logistics parks

Key clusters such as Farukh Nagar (Delhi NCR) and Oragadam (Chennai) have emerged as demand hotspots due to improved connectivity and proximity to manufacturing hubs.

Segment-wise Demand Trends

Different clusters are leading across sectors:

• 3PL Logistics: Dominated by Bhiwandi and Farukh Nagar
• Engineering & Manufacturing: Led by Oragadam and NH-48 (Chennai)
• E-commerce: Concentrated in Farukh Nagar and Bhiwandi
• Automobile: Driven by Chakan (Pune) and Bengaluru clusters

Together, 3PL, Engineering, and E-commerce account for nearly two-thirds of total demand over the last five years.

Large Deals Concentrated in Key Hubs

Nearly 75% of large warehousing deals (200,000+ sq ft) have taken place in these high-activity clusters.

Bhiwandi and Farukh Nagar alone contribute nearly one-third of large transactions, reinforcing their position as India’s primary logistics gateways.

Rental Growth to Continue

Rental appreciation has already been strong, with 15–35% growth over the past five years in key clusters.

Going forward:

• Rentals are expected to increase by 5–10% annually
• Driven by demand for Grade A, institutional-quality assets
• Supported by infrastructure and occupier expansion

Emerging Tier-II Cities Next Growth Frontier

While the 13 clusters will continue to dominate, emerging cities such as:

• Indore
• Jaipur
• Coimbatore
• Bhubaneswar
• Visakhapatnam

are expected to see faster growth in transactions due to:

• E-commerce expansion
• Manufacturing push
• Supply chain diversification

Conclusion

India’s industrial and warehousing sector is consolidating around a few high-performing micro-markets, with infrastructure, connectivity, and institutional investment acting as key growth drivers.

As these 13 clusters scale further, they are set to anchor the country’s logistics ecosystem, while newer markets gradually rise as complementary hubs.

Also Read: Warehousing & Logistics Absorption Increased by 8% Annually in H1 2024, with Mumbai and Pune Leading

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