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A New Era of Growth and Transformation
Pune has cemented its position as India’s premier industrial real estate market, surpassing larger rivals like Delhi-NCR and Mumbai for the second consecutive year. According to JLL India’s latest Logistics & Industrial report, Pune’s annual net absorption of industrial space has nearly tripled—rising from 4.2 million square feet in 2019 to 11.3 million square feet by the end of 2024. This remarkable 2.5-fold increase, with a compound annual growth rate (CAGR) exceeding 20%, underscores the city’s rapid ascent in the industrial sector.
A defining feature of Pune’s industrial evolution is the shift toward high-quality infrastructure. Grade-A facilities now comprise 75% of the city’s total industrial stock, signaling a new standard for the market. Net absorption of Grade-A spaces alone soared from 3.2 million square feet in 2019 to 9.9 million square feet in 2024. This trend has attracted global occupiers and institutional investors, who are actively developing prime assets and setting new benchmarks for industrial excellence in the region.
Pune’s industrial story is not just about growth—it is about transformation and diversification. While automotive and engineering sectors remain the bedrock, accounting for approximately 65% of transactions in 2024, demand from FMCG, home and construction, and pharmaceutical sectors is strengthening. This broadening of the industrial base is adding depth and resilience to Pune’s ecosystem, making it a magnet for high value-added industries and foreign investment.
Looking ahead, Pune’s industrial trajectory remains strongly positive. Total industrial stock is projected to more than double by 2030, exceeding 140 million square feet. Annual supply and demand are expected to consistently remain above 10 million square feet, while overall vacancy rates are forecasted to drop below 5% in the coming years. These projections highlight Pune’s enduring appeal as a hub for innovation and investment.
Sanjay Bajaj, Senior Managing Director—Pune and Logistics & Industrial, India, JLL, remarked, “Pune’s industrial real estate market is not just growing, it’s evolving. The shift towards Grade-A facilities, coupled with sector diversification and increased foreign investment, positions Pune as a prime destination for future development. We are not just seeing expansion; we are witnessing a transformation that will redefine Pune’s role in India’s industrial landscape.”
Pune’s success story is a testament to its adaptability, forward-thinking infrastructure, and dynamic industrial ecosystem. As the city continues to set new standards, it offers valuable lessons for other markets aspiring to achieve similar growth and resilience.
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