Pune – For the second consecutive year, Pune has outperformed both Delhi-NCR and Mumbai to become India’s top industrial real estate hub. According to JLL India’s latest Logistics & Industrial report, the city’s annual net absorption of industrial space has surged—from 4.2 million sq ft in 2019 to 11.3 million sq ft by end-2024. This marks nearly a threefold increase, with a compound annual growth rate of over 20%.
Grade-A Inventory on the Rise
One of the key drivers of this transformation is the rapid growth in premium, Grade-A facilities. Grade-A stock now accounts for 75% of Pune’s total industrial real estate supply. Annual net absorption of Grade-A space increased from 3.2 million sq ft in 2019 to 9.9 million sq ft in 2024. This shift has drawn significant interest from global occupiers and institutional investors, strengthening Pune’s position as a strategic industrial investment destination.
Sectoral Diversification Boosting Demand
While Pune continues to be a major hub for automotive and engineering industries—accounting for 65% of all transactions in 2024—the city is witnessing growing interest from other sectors such as FMCG, construction, real estate, and pharmaceuticals. The industrial market is further bolstered by the entry of international manufacturers from countries like Germany, South Korea, and Japan, adding to its diversification and long-term resilience.
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Outlook: Sustained Expansion Ahead
JLL’s projections indicate continued growth. The industrial real estate stock in Pune could surpass 140 million sq ft by 2030, more than doubling its current levels. Both supply and demand are expected to remain above 10 million sq ft annually, maintaining vacancy rates below 5%. These figures reflect strong fundamentals and sustained demand for quality logistics and industrial space in the region.
Sanjay Bajaj, Senior Managing Director at JLL India, remarked, “Pune’s industrial real estate market is not just growing; it’s evolving. The shift towards Grade-A facilities, sector diversification, and increased foreign investment position Pune as a prime destination for future development.”
Why Pune Leads the Pack
- Modern Infrastructure – The increase in Grade-A space has upgraded the city’s industrial landscape to international standards.
- Diverse Demand Base – Growth is no longer limited to automotive; other sectors are driving momentum.
- Foreign Investment Confidence – Multinational companies are setting up operations, trusting Pune’s ecosystem.
- Promising Future Growth – Demand projections and low vacancies suggest a robust pipeline for the next five years.
Comparison at a Glance
| City | Net Absorption 2024 (sq ft) | Key Strengths |
|---|---|---|
| Pune | 11.3 million | Premium-grade stock, diversified sectors |
| Delhi-NCR | Lower than Pune | Larger market, but slower pace of expansion |
| Mumbai | Lower than Pune | Established market with limited new supply |
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Bottom Line
Pune’s continued leadership in industrial real estate highlights a strategic shift in India’s property landscape. With a sharp rise in premium facilities, expanding industry presence, and a strong outlook backed by institutional demand, Pune has set a new benchmark for industrial markets across the country. As Tier-I cities grapple with space and cost constraints, Pune offers a blueprint for growth driven by infrastructure, quality, and diversification.
