Pune emerges as top industrial real estate market, outperforms Delhi-NCR and Mumbai for the second year in a row
Pune’s industrial real estate market has seen an increase, with annual net absorption nearly tripling from 4.2 million sq. ft. in 2019 to 11.3 million sq ft. by the end of 2024, a 2.5x increase and a compound annual growth rate (CAGR) exceeding 20%, according to a report by JLL India.
It noted that during the same period, the city’s total industrial stock expanded from 24.2 million sq. ft. to 60.9 million sq. ft., maintaining a strong growth trajectory.
According to the report, Pune has emerged as the nation’s leading industrial real estate market for the second consecutive year, outperforming larger markets like Delhi-NCR and Mumbai, and demonstrating unprecedented growth in the sector.
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JLL’s latest Logistics & Industrial report highlights a notable shift in quality. Grade-A facilities now make up 75% of Pune’s total industrial stock, signalling that premium infrastructure is becoming the norm.
Grade-A net absorption alone rose from 3.2 million sq. ft. in 2019 to 9.9 million sq. ft. in 2024. This move toward high-quality, specification-driven spaces has attracted global occupiers and institutional investors, who are actively developing prime assets and setting new benchmarks for industrial infrastructure in the region, the report said.
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“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, and demand from high value-added industries, positions Pune as a prime destination for future development,” Sanjay Bajaj, senior managing director – Pune and Logistics & Industrial, India JLL.
“We are not just seeing expansion; we are witnessing a transformation that will redefine Pune’s role in India’s industrial landscape,” Bajaj said.
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Pune’s industrial story
According to the report, Pune’s industrial story is also one of diversification. While the automotive and engineering sectors remain the foundation, accounting for approximately 65% of all transactions in 2024, demand from FMCG, home and construction, and pharmaceutical sectors is strengthening, adding depth and resilience to the city’s industrial ecosystem.
“Looking ahead, Pune’s trajectory remains strongly positive. Total industrial stock is projected to more than double by 2030, exceeding 140 million sq ft, the report said.
“Annual supply and demand are expected to consistently remain above 10 million sq. ft., while overall vacancy rates are forecasted to drop below 5% in the coming years,” the report added.
