Demand for Industrial and Warehousing Space in Pune Increases Substantially in 2022

Demand for industrial and storage space in Pune is likely to reach a new high in 2022, fueled by restored confidence in the Indian economy and a renewed emphasis on manufacturing, as well as the buoyancy of e-commerce and third-party logistics (3PL) businesses.

The industrial and warehouse sector in Pune has risen significantly, and demand is likely to reach a record high of 7.5 million square feet in 2022.

For more than 6 decades, Pune city has been a manufacturing centre, attracting numerous big international firms concentrating on automotive, automotive and ancillary products, electronics, white goods, and some of the more recent sectors like as electric vehicles (EVs) and renewable energy.

While the present stock of warehouse and industrial space is 33.2 million square feet as of 2021, the supply is expected to reach close to 60 million square feet by 2025. The supply is focused mostly in the northern section of the city, including Chakan and Talegaon, as well as the eastern belt, which runs from Phulgaon to Ranjangaon.

Over the last several years, the Pune market has been defined by outstanding demand-supply dynamics, which has resulted in vacancy levels hovering around 10%. The favourable demand-supply dynamics are projected to persist over the next several years, making Pune one of the most attractive locations in the nation for industrial parks and warehouse construction.

The year 2022 seems to be incredibly promising for Pune's industrial and warehousing industry. From 2017 through 2021, the city saw around 4 million square feet of yearly absorption, despite the market drop during COVID.

Chakan and Talegaon account for over 70% of industrial and warehouse supplies, thanks to the MIDC's outstanding environment, which includes physical facilities like as roads, water, and electricity, as well as connection to National Highways and the JNPT.

The western India city's peak demand of 6.5 million square feet in 2021 indicates a definite comeback of the economy and consumer mood, driven by manufacturing, third-party logistics, and e-commerce. 

Additionally, the city has seen a surge in attention from international investors and funds examining additional investment opportunities.

Talegaon is a developing industrial and warehouse market located near Chakan and linked by the NH4. Clients have access to a limited amount of ready supply in the micromarket. 

The Chakan - Talegaon cluster is the city's biggest storage area, with a high concentration of Grade A space and the highest yearly demand contribution.

The Pimpri-Chinchwad Municipal Corporation (PCMC), India's oldest car industry sector, is home to almost 4,000 automotive and associated manufacturing firms. PCMC is characterised by small and medium-sized enterprises (SMEs), as well as major Indian and multinational firms operating in this space.