Pune emerges as India's industrial real estate leader with 2.5x growth since 2019: Report

New Delhi, July 1 (IANS) Pune has become a major player in India's expanding manufacturing sector and the country's leader in industrial real estate as the city's yearly net absorption of industrial space has nearly tripled from 4.2 million square feet in 2019 to an astounding 11.3 million square feet by the end of 2024, a new report said on Tuesday.

This indicates a 2.5x increase and a compound annual growth rate (CAGR) of more than 20 per cent, according to data compiled by JLL.

The city's industrial real estate sector has experienced unprecedented growth, outperforming larger markets like Mumbai and the National Capital Region for the second year in a row.

Additionally, the city's total stock has grown from 24.2 million square feet to 60.9 million square feet during this time, maintaining a similar growth momentum.

"Pune's industrial real estate market is not just growing; it is evolving,| said Sanjay Bajaj, Senior Managing Director -- Pune and Logistics & Industrial, India JLL.

"The shift towards Grade A facilities, coupled with sector diversification and increased foreign investment, and demand from high-value-added industries, positions Pune as a prime destination for future development," he added.

This growth represents not just quantitative expansion but a qualitative transformation. Grade A facilities now constitute 75 per cent of Pune's overall industrial stock, making premium infrastructure the standard rather than the exception.

Grade A net absorption saw remarkable growth from 3.2 million sq. ft. to 9.9 million sq. ft. between 2019-2024, as per the report.

Pune's industrial real estate growth story is characterised by its diversity. While the automotive and engineering sectors remain the dominant ones, accounting for approximately 65 per cent of all transactions in 2024, demand is being driven by the fast-moving consumer goods (FMCG), real estate, construction, and pharmaceutical sectors, bringing depth and resilience to the city's industrial ecosystem.

The city has emerged as a truly global industrial hub, with a significant presence of German and South Korean companies, while Japanese companies have shown growing interest in recent years.

This international diversity is driven by the establishment of manufacturing bases by global original equipment manufacturers (OEMs) in Pune.

Consequently, Pune's trajectory remains very positive. The total industrial inventory is projected to double by 2030, surpassing 140 million square feet.

--IANS

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