Pune’s industrial and warehousing demand is expected to clock an all-time high of 7.5 million sq ft in 2022, a report by JLL said on April 21. The high demand is because of the renewed focus on the manufacturing sector as well as the buoyancy of E-commerce and 3PL players, which is expected to propel demand further,
The current stock stands at 33.2 million sq ft in 2021 and the forecasted supply is close to 60 million sq ft until the end of 2025, JLL said.
Pune witnessed peak demand of 6.5 million sq ft in 2021, indicating a clear resurgence of the economy as well as customer sentiments, led by manufacturing, 3PL and e-commerce. Additionally, the city witnessed increased interest from global investors and funds, evaluating further investments. Projected growth in demand is around 15-16 percent in 2022 to take it to 7.5 million sq ft by the end of 2022, it said.
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The supply is predominantly concentrated in the Northern part of the city namely Chakan and Talegaon and the Eastern belt starting from Phulgaon to Ranjangaon. Chakan and Talegaon account for almost around 70 percent of the industrial and warehousing supply, owing to the excellent ecosystem set up by the MIDC, including the physical infrastructure, roads, water, power, and connectivity to National Highways and JNPT.
Over the past few years, Grade A supply has attracted quality tenants. Pune has also been a manufacturing hub since the 1960’s, and has attracted several large multinational corporations, focused on auto, auto and ancillaries, electronics, white goods, and some of the newer industries like Electric Vehicles (EVs) and renewables.
Talegaon is an upcoming industrial and warehousing market in proximity to Chakan, connected via the NH4. The micro-market has limited ready supply on offer for clients. Chakan – Talegaon cluster is the largest warehousing hub in the city, with a concentration of Grade A spaces, and has the largest amount of demand contribution on an annualised basis.
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Pimpri-Chinchwad Municipal Corporation (PCMC), India’s oldest automobile industrial area has more than 4,000 auto and ancillary units. PCMC is characterised by SMEs MSMEs and Large Indian and Multinational corporations operating within the micro-market.
“The Pune market has been characterised by excellent demand-supply dynamics over the few years, which resulted in vacancy levels hovering around the 10 percent. We expect the healthy demand-supply dynamics to continue over the next few years, making Pune one of the most attractive markets in the country for the development of industrial parks and warehouses,” said Sanjay Bajaj, Managing Director - Logistics and Industrial, India, JLL & Pune, JLL.
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