How has Pune Become India's Industrial Real Estate Leader with 2.5x Growth Since 2019?
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Synopsis
Pune's industrial real estate market has seen remarkable growth, with net absorption nearly tripling since 2019. Discover how this city has positioned itself as a leader in India's manufacturing sector, outperforming major markets and attracting global investments.
Key Takeaways
- Pune's industrial space absorption has tripled since 2019.
- 2.5x growth with a CAGR of over 20%.
- Grade A facilities now comprise 75% of total stock.
- Diverse sectors driving demand, including automotive and FMCG.
- Projected doubling of industrial inventory by 2030.
New Delhi, July 1 (NationPress) Pune has positioned itself as a significant player in India's thriving manufacturing industry, establishing itself as the leading city in industrial real estate. According to a new report, the city's annual net absorption of industrial space has nearly tripled from 4.2 million square feet in 2019 to an astonishing 11.3 million square feet projected by the end of 2024.
This remarkable transformation represents a 2.5x increase and a compound annual growth rate (CAGR) exceeding 20 percent, as reported by JLL.
Pune's industrial sector has achieved extraordinary growth, outpacing larger markets such as Mumbai and the National Capital Region for the second consecutive year.
Moreover, the city's total industrial space has expanded from 24.2 million square feet to 60.9 million square feet in this timeframe, maintaining a consistent growth trend.
“Pune's industrial real estate market is not just expanding; it is evolving,” said Sanjay Bajaj, Senior Managing Director - Pune and Logistics & Industrial at JLL India.
“The transition towards Grade A facilities, along with sector diversification, increased foreign investments, and rising demand from high-value industries, positions Pune as a leading choice for future developments,” he added.
This growth signifies not only quantitative expansion but also a qualitative shift. Currently, Grade A facilities account for 75 percent of Pune's total industrial stock, making premium infrastructure the norm rather than the exception.
Between 2019 and 2024, the net absorption of Grade A spaces saw impressive growth from 3.2 million sq. ft. to 9.9 million sq. ft., according to the report.
The diversity of Pune's industrial growth story is noteworthy. While the automotive and engineering sectors dominate, making up roughly 65 percent of all transactions in 2024, the demand is also being fostered by the fast-moving consumer goods (FMCG), real estate, construction, and pharmaceutical sectors, adding depth and resilience to the city's industrial landscape.
Pune has evolved into a truly global industrial hub, with a significant presence of German and South Korean firms, and growing interest from Japanese companies in recent years.
This international presence is driven by the establishment of manufacturing roots by global original equipment manufacturers (OEMs) in Pune.
As a result, Pune's future appears very promising. The total industrial inventory is expected to double by 2030, surpassing 140 million square feet.
Point of View
Pune's rapid ascent in the industrial real estate sector signifies a crucial shift in India's economic landscape, showcasing resilience and adaptability. As the nation aims for self-reliance, Pune stands out as a prime example of how local markets can thrive amid global competition. With increasing investments and diversified industries, Pune is poised for sustained growth.
NationPress
01/07/2025
Frequently Asked Questions
What has contributed to Pune's industrial growth?
Pune's industrial growth is driven by the demand for Grade A facilities, increased foreign investments, and a diverse industrial ecosystem, particularly in sectors like automotive, FMCG, and pharmaceuticals.
How much has Pune's net absorption increased?
Pune's net absorption of industrial space has nearly tripled from 4.2 million square feet in 2019 to an estimated 11.3 million square feet by the end of 2024.
What is the future projection for Pune's industrial inventory?
Pune's total industrial inventory is expected to double by 2030, exceeding 140 million square feet.
