India’s e-commerce revolution is now taking an even faster turn, as the rise of quick commerce is reshaping urban real estate. At the heart of this change are dark stores—compact, strategically located warehouses that cater exclusively to online orders and promise deliveries in minutes.
Currently, India has around 2,525 dark stores across more than 100 cities, covering nearly 13 million square feet of space, according to a Savills India report released in December. Experts expect this number to nearly triple to 7,500 by 2030 as companies scramble to cut delivery timelines.
What Are Dark Stores?
A dark store is essentially a small warehouse, typically between 3,000 and 8,000 square feet, situated close to dense residential areas. Unlike conventional retail outlets, these stores are not open to the public. Instead, they serve as fulfilment centres for online orders, enabling hyperlocal and quick deliveries—a model that is rapidly gaining traction with consumers who increasingly expect groceries, daily essentials, and even high-value items delivered in minutes.
Tier-1 cities dominate the dark store landscape, accounting for 68 percent of the total store count and nearly 9 million square feet of space. Delhi-NCR leads with around 400 dark stores, followed by Bengaluru (360), Mumbai (250), and Chennai (190). Tier-2 and Tier-3 cities together host roughly 800 dark stores, spanning around 4 million square feet, reflecting the spread of quick commerce beyond major metros.
Quick Commerce Fuelling Growth
Market analysts attribute the rapid rise of dark stores to the hyperlocal delivery model, which has moved beyond groceries and essentials to higher-value categories, including premium personal care products, luxury lifestyle items, and even time-sensitive medical supplies. Srinivas N, Managing Director, Industrial & Logistics at Savills India, explains that while Tier-1 and Tier-2 cities will continue to lead expansion, Tier-3 cities present untapped potential, with suburban micro-markets balancing accessibility and costs effectively.
Opportunities for Developers and Investors
The growth trajectory of dark stores presents new avenues for developers and investors. Currently, many dark stores occupy repurposed retail or commercial spaces—standalone shops, small offices, restaurants, or grocery stores. However, these conversions come with challenges, including structural constraints, limited automation, refrigeration limitations, safety issues, and higher operational costs.
Arvind Nandan, Managing Director, Research & Consulting, Savills India, highlights that this evolving demand offers developers a chance to build purpose-designed dark stores or retrofit underutilized commercial properties. “With dark stores expected to grow threefold by 2030, there is significant scope to create high-value assets that meet operational needs while optimising delivery efficiency,” he says.
Looking Ahead
As India’s quick commerce ecosystem matures, urban real estate will increasingly adapt to the needs of these hyperlocal fulfilment networks. Purpose-built dark stores could become a permanent feature of the cityscape, driving demand for innovative design and location strategy. For investors, developers, and businesses, the dark store boom represents a golden opportunity to capitalise on the intersection of technology, consumer convenience, and real estate.
The next few years may see entire city corridors shaped by these compact warehouses, quietly transforming how Indians shop, live, and interact with urban spaces.
