The Pune industrial and warehousing market demand is expected to clock an all-time high of 7.5 million sq ft in 2022. The Pune market had a stock of 33.2 million sq ft in 2021 and the supply is expected to be close to 60 million sq ft by the end of 2025, a report by real estate consultancy firm JLL said.
“Pune witnessed peak demand of 6.5 million sq. ft. in 2021, indicating a clear resurgence of the economy as well as customer sentiments, led by manufacturing, 3PL, and e-commerce. Additionally, the city witnessed increased interest from global investors and funds, evaluating further investments. The projected growth in demand is around 15-16% in 2022 to take it to 7.5 million sq. ft by the end of 2022,” the report said. The city had witnessed around 4 million sq. ft of annual absorption from 2017 to 2021.
Sanjay Bajaj, managing director — Logistics and Industrial, India, JLL & Pune, JLL said: “The Pune market had a healthy demand-supply dynamics over the few years, which resulted in vacancy levels hovering around the 10%. This was expected to continue over the next few years, making Pune one of the most attractive markets in the country for the development of industrial parks and warehouses.”
Chakan and Talegaon account for almost 70% of the industrial and warehousing supply. The rest of the supply was in the Eastern belt starting from Phulgaon to Ranjangaon. Apart from auto, auto and ancillaries, electronics, white goods, and some of the demand had come from newer industries like electric vehicles and renewables, the JLL report said. This demand was also driven by the physical infrastructure, roads, water, power provided by the Maharashtra Industrial Development Corporation and connectivity to National Highways and JNPT port.
Rentals in the Pune market during 2021 were at Rs 17-Rs 30 per sq ft per month.