Chennai Leads India’s Grade A Warehousing Growth With Three High Activity Clusters

Chennai has emerged as one of India’s strongest industrial and warehousing markets, with three high activity clusters driving Grade A demand and supply, according to a report by Colliers India. The report highlights that high activity clusters are expected to account for nearly 70 to 80 percent of India’s Grade A industrial and warehousing demand and supply in the coming years.

High activity clusters are micro markets that have recorded cumulative demand and supply of more than 4 million square feet each since 2021. These clusters are becoming the backbone of India’s logistics expansion as companies look for modern, well connected and institutionally managed warehousing spaces.

India’s Grade A industrial and warehousing stock has now reached about 300 million square feet, almost double the inventory recorded in 2021. This growth is largely concentrated across 13 high activity clusters, which together accounted for nearly 75 percent of cumulative demand and fresh supply since 2021.

Chennai stands out nationally with three such clusters, ahead of several other major markets. Delhi NCR, Bengaluru and Pune have two each, while Mumbai, Kolkata, Ahmedabad and Hyderabad have one each. The 13 clusters together hold around 215 million square feet of Grade A stock.

In Chennai, clusters such as NH 16 and Oragadam have benefited from port connectivity, industrial activity and improving road infrastructure. Access to international seaports and the Bengaluru Chennai Expressway has strengthened demand from automobile, e commerce and third party logistics players.

The report also noted that infrastructure led growth remains a key driver for industrial and warehousing demand. Logistics parks, industrial corridors, freight corridors and sector focused initiatives such as electric vehicle, textile and semiconductor parks are expected to further support expansion.

Across India, Bhiwandi in Mumbai remains the largest industrial and warehousing cluster with 42 million square feet of Grade A stock. Its access to Jawaharlal Nehru Port and major expressways gives it a strong logistics advantage.

For Chennai, the findings reinforce its growing role in India’s logistics map. With strong port access, manufacturing depth and rising institutional interest, the city is expected to remain a major warehousing growth hub.