Home » News » Real Estate

Presents

Co-Sponsored by

In Association With

Sep 20, 2013, 03.51 PM IST | Source: Jones Lang LaSalle

Pune's industrial real estate legacy

Pune has been a favoured industrial destination for a very long time. In fact, manufacturing has been a major development focus for the city since the inception of PCMC in the 1960's.

Pune has been a favoured industrial destination for a very long time. In fact, manufacturing has been a major development focus for the city since the inception of PCMC in the 1960's. Since then, there has been a massive influx of European companies who were and continue to be keen on setting up manufacturing facilities there.

The arrival of these industrial entities triggered off a whole slew of other manufacturing establishments, both Indian and international, and established a continuous industrial growth pattern in Pune. The formation of the MIDC in the Pimpri Chinchwad Municipal Corporation resulted in a constant process of industrial land acquisition and the creation of required support infrastructure.

Thanks to the Government's LPG (Liberalisation, Privatisation and Globalisation) policies, Pune's industrial growth is supported by a huge availability of trained man power from various local educational institutes. Another advantage that Pune's industrial sector offers is the significantly lower cost of real estate when compared to other industrial hotbeds in India. The proximity to Mumbai, India's business capital and primary port, is - so to speak - the icing on the cake.

Rapid Organized Growth

The outstanding response to the MIDC at Pimpri Chinchwad ushered in the formation of other such manufacturing hubs. The MIDC in Hadapsar was established in the 80's, and the 90's saw the development of Hinjewadi's MIDC, which supports both IT and manufacturing industries. Further ahead came the five star MIDC at Ranjangaon, which represented an entirely new evolutionary step for MIDC standards.

These industrial zones combined to put the final flourish to one of the country's most oustanding masterpieces of industrial development. Over the years, Pune has maintained and grown its reputation as the preferred Industrial location for Indian and international companies alike.

The Real Estate Factor

It is an established fact that there is a direct correlation between a city's industrial development and its real estate growth. In Pune, areas such as Pimpri-Chinchwad, Talegaon and the Chakan belt, Sanaswadi, Pirangut, Shirwal and Ranjangaon are centres for the manufacture and assembly of commercial vehicles, locomotives, electronic consumer durables, pharmaceuticals and a number of intermediate goods. These areas have therefore seen unprecedented real estate development in stable real estate market conditions defined by realistic property prices.

The modus operandi that major industries follow is to first procure real estate as assets and then proceed with built-to-suit development for their operations. Auto ancillaries and other small and medium scale industries prefer to begin with leasing industrial spaces, launching operations and then concentrating on gaining strength and momentum. Finally, they will start acquiring land for their expansion initiatives.


Demand Scenario

As things stand today, Pune's industrial real estate sector is extremely dynamic. In fact, it is probably the only sector where demand is outstripping supply. There is huge demand for readily available quality industrial spaces with clear land titles.

With many original equipment manufacturers (OEMs) making a beeline for Pune, there has been a corresponding ripple demand effect from Tier 1, 2 and 3 ancillaries who supply raw materials to such companies. Implied therein is a huge and uniquely differentiated opportunity for developers, since this sector - unlike IT/ITES and residential real estate - is currently not being catered to by a sufficient number of organized builders.

Today, Pune's most happening growth corridors for industrial real estate are Chakan-Talegaon for auto and auto ancillary industries and the Nagar Road-Ranjangaon belt for the same sectors, in addition to consumer goods manufacturing. Shirwal is also gaining momentum, largely because of the competitive real estate prices there.


The following industry sectors are generating the highest demand for industrial real estate for anything between 5-20 acres in Pune:

- Automobiles

- Auto ancillaries

- Chemicals

- Pharmaceuticals

- Plastics

- Mechanical

- Telecom

- Electronics

ADS BY GOOGLE

Videos

more »

Property rates
  • Residential
  • commercial
Mumbai
Capital Values Rate/Sq ft (INR)
Aajiwali
3000 - 5000
Ambernath
3000 - 5000
Badlapur
1000 - 3000
Bhandup (West)
11000 - 13000
Chembur (East)
15000 - 17000
Chembur (West)
11000 - 14000
Dombivali (East)
4000 - 6000
Ghatkopar
13000 - 15000
Heeranandani Gardens Estate - Powai
25000 - 30000
Hiranandani Gardens Estate - Powai
25000 - 30000
Kalyan (East)
2000 - 4000
Kalyan( West)
3000 - 5000
Karjat
1000 - 3000
Khandala
8000 - 10000
Kharegaon
5000 - 7000
King Circle
17000 - 28000
LBS Marg
12000 - 15000
Lonavala
3000 - 5000
Mulund (East)
11000 - 14000
Mulund (West)
11000 - 14000
Mumbai Nasik Highway
3000 - 6000
Powai
15000 - 17000
Senapati Bhagath Singh Road
3000 - 5000
Sion (East)
18000 - 21000
Sion (West)
17000 - 22000
Tilak Nagar
12000 - 22000
Ulhasnagar
3000 - 5000
Vikhroli
11000 - 14000
4 Bunglows
17000 - 28000
7 Bunglows
13000 - 23000
Chandivali
10000 - 15000
Malad (East)
12000 - 14000
Versova
21000 - 24000
Airoli
4000 - 8000
Belapur
6000 - 9000
Ghansoli
6000 - 8000
Kalamboli
4000 - 9000
Kamothe
4000 - 6000
Nerul
7000 - 10000
Palm Beach Road
12000 - 15000
Panvel
3000 - 6000
Sanpada
8000 - 10000
Sea Woods
8000 - 10000
Ulwe
3000 - 6000
Uran
3000 - 6000
Vashi
9000 - 12000
Altamount Road
62000 - 72000
Breach Candy
62000 - 74000
Chowpathy
48000 - 58000
Colaba
42000 - 46000
Cuffe Parade
67000 - 69000
Dadar(East)
32000 - 34000
Dadar(West)
29000 - 32000
Lower Parel
32000 - 34000
Mahalaxmi
38000 - 40000
Malabar Hills
68000 - 75000
Mumbai Central
23000 - 34000
Napean Sea Road
66000 - 74000
Parel
26000 - 34000
Prabhadevi
37000 - 39000
Tardeo
41000 - 49000
Worli
36000 - 41000
Andheri (West)
18000 - 20000
Andheri(East)
15000 - 17000
Bevarly Park
5000 - 7000
Bhayander (East)
5000 - 6000
Bhayander (West)
3000 - 5000
Boisar
1000 - 3000
Borivali (East)
11000 - 13000
Borivali (West)
10000 - 14000
Dahisar
4000 - 8000
Goregaon (East)
13000 - 17000
Goregaon (West)
12000 - 14000
Kandivali (East)
12000 - 14000
Kandiwali (West)
11000 - 12000
Malad(West)
9000 - 14000
Mira Road
5000 - 7000
Naigaon
1000 - 4000
Nala Sopara (Eastt)
3000 - 5000
Nalasopara (West)
3000 - 5000
Poonam Nagar
6000 - 8000
Shanti Nagar
7000 - 9000
Shrishti
6000 - 9000
Vasai Road
1200 - 4000
Virar
1000 - 3000
Note: Price trend are based on asking rate and not necessarily on the transaction date
Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.