Pune has cemented its position as India’s fastest-growing industrial real estate market, recording a staggering 2.5-fold surge in demand over the past five years and outpacing traditional heavyweights like NCR and Mumbai. According to the latest data released by JLL, the city’s annual net absorption of industrial and warehousing space jumped from 4.2 million sq. ft. in 2019 to 11.3 million sq. ft. by the end of 2024—reflecting a compound annual growth rate (CAGR) of over 20%.
Overall, Pune’s total industrial stock expanded from 24.2 million sq. ft. in 2019 to nearly 61 million sq. ft. in 2024. JLL projects this figure will more than double, crossing 140 million sq. ft. by 2030.
Quality Drives Demand
Notably, the market is witnessing not just rapid growth but a marked shift toward higher-quality infrastructure. Grade A facilities—premium spaces built to modern specifications—now account for 75% of Pune’s industrial stock, among the highest in India. Grade A net absorption alone nearly tripled over five years, rising from 3.2 million to 9.9 million sq. ft.
“Pune’s industrial real estate market is not just growing; it’s evolving,” said Sanjay Bajaj, Senior Managing Director – Pune and Logistics & Industrial, India, JLL. “The combination of Grade A facilities, rising foreign investment, and demand from high value-added sectors is transforming the city into a strategic manufacturing and logistics hub.”
Manufacturing Leads, Diversification Grows
While automotive and engineering industries remain dominant—accounting for about 65% of leasing activity in 2024—other sectors are gaining ground. Fast-moving consumer goods (FMCG), home and construction materials, and pharmaceuticals are contributing to a more diversified and resilient industrial ecosystem.
International manufacturers are increasingly flocking to Pune. German and South Korean companies have established a strong presence, while Japanese original equipment manufacturers (OEMs) have accelerated their investments in recent years.
Looking Ahead: Strong Momentum
The outlook for the remainder of the decade is bullish. JLL anticipates that annual supply and demand will consistently stay above 10 million sq. ft. Vacancy rates are expected to tighten further, dipping below 5% as occupiers compete for high-specification space.
As Pune consolidates its status as India’s premier industrial real estate market, its growth is reshaping the country’s broader manufacturing landscape. The city is emerging as the leading destination for global companies seeking high-quality infrastructure, robust talent, and strategic access to Western India.
Also Read: Pune Property Market Sees Mixed Trends in May 2025; Year-to-Date Performance Strong
