Industrial Expansion Thrives in Pune: Findings Reveal
Pune, a bustling city in Maharashtra, has cemented its position as India's leading industrial real estate market for the second consecutive year. This growth can be attributed to several key factors, as outlined below.
Firstly, Pune recorded the highest absorption of leased industrial space among all Indian cities for two consecutive years (2023 and 2024), surpassing major markets like NCR and Mumbai. This impressive feat is due in part to the high proportion of Grade A industrial stock in Pune, with approximately 75% of the total industrial real estate meeting these standards, one of the highest proportions nationwide.
The manufacturing industry, particularly engineering and automotive sectors, account for about 65% of industrial real estate transactions, driving robust demand. Furthermore, significant foreign investments from German, South Korean, and Japanese companies have accelerated industrial development along Pune’s industrial corridors.
Pune’s industrial real estate market has grown at a compound annual growth rate (CAGR) of over 20% between 2019 and 2024, and it is projected to double by 2030, fueled by demand from manufacturing and warehousing/logistics sectors. The city's total industrial stock increased from 24.2 million square feet in 2019 to 60.9 million square feet in 2024, and is anticipated to exceed 140 million square feet by 2030.
The strategic location and infrastructure of Pune also contribute to its success. The city benefits from key infrastructure and logistics corridors such as NH-48 and the Mumbai-Pune Expressway. The National Logistics Policy and Goods and Services Tax (GST) reforms also enhance logistics efficiency and reduce costs, supporting industrial growth.
Looking ahead, Pune is poised for continued robust growth. The city is expected to maintain strong demand in both manufacturing and warehousing sectors, with industrial real estate continuing to evolve towards more Grade A facilities. Automation investments and sustainable development practices are gaining traction, supporting efficient and green industrial growth. The development of multi-modal logistics parks and enhanced connectivity will bolster Pune’s position as a logistics hub, complementing its industrial real estate market.
Global players backed by institutional investors are developing prime assets and elevating infrastructure standards across the region. Overall vacancy rates in Pune's industrial real estate market are forecasted to drop below 5% in the coming years, reflecting the strong demand for quality industrial space in the city. Pune's significant presence of German and South Korean companies, and the increasing interest from Japanese firms, further underscores its status as a thriving industrial hub in India.
The economic growth of Pune's industrial real estate market has attracted investments from global players, notably German, South Korean, and Japanese companies, contributing to the expansion of defi along Pune's industrial corridors. The increasing demand for quality industrial space is expected to lower vacancy rates below 5%, further fueling investment opportunities in this sector. As India's leading industrial real estate market, Pune's position is further bolstered by its strategic location and infrastructure, making it an attractive destination for sports teams seeking efficient logistics and warehousing solutions.
