March 20, 2024: Pune’s real estate sector is poised for a record year in office and industrial and logistics (I&L) segment leasing in 2024, announced real estate consulting firm CBRE South Asia.
Office leasing trends in Pune
As per CBRE India, Pune’s office segment leasing is projected to hit 7 million square foot (msf) in 2024, the highest ever in the last six years. With this, the city currently stands as the sixth-largest office market in India. The availability of land banks has been identified as a significant factor driving this growth, enabling the development of expansive office campuses and providing a diverse selection of high-quality assets at competitive rates. This combination is proving highly attractive to businesses seeking expansion or relocation opportunities.
Office leasing in Pune touched 6.3 msf in 2023, a 13% increase from 2022. This growth stemmed from high-quality developments, a strong talent pool and competitive pricing. The demand was spread across prime areas, including Aundh, Baner and Viman Nagar, among others, with each zone absorbing nearly 1.5 msf. New players, such as Prestige and Salarpuria, and institutional investors such as Mapletree, entered the market, further fueling activity.
| Year-wise office absorption-supply in Pune | ||
| Year | Absorption (in msf) | Supply (in msf) |
| 2019 | 6.9 | 5.0 |
| 2020 | 3.5 | 3.7 |
| 2021 | 3.3 | 6.0 |
| 2022 | 5.6 | 4.3 |
| 2023 | 6.3 | 5.3 |
| 2024 (Estimated) | 7.0 | 6.3 |
Driven by pandemic-induced uncertainties, flexible workspace operators captured a significant portion of leasing activity in Pune. These adaptable spaces allow companies to explore new operational locations and seek agile workspace solutions. While the Banking, Financial Services and Insurance (BFSI) sector maintained its expansion trajectory, the technology sector witnessed moderate leasing activity due to factors such as return-to-office (RTO) policies and global economic headwinds. Pune’s robust talent pool and competitive real estate market remain major draws for information technology (IT) companies. This is evidenced by the establishment of campuses by leading firms such as Tata Consultancy Services, Infosys, Wipro and Accenture within the city. Their presence reflects a strong confidence in the market’s potential. Furthermore, the city’s office market is set to be bolstered by upcoming high-quality office developments and ongoing infrastructure projects. The demand is expected to remain stable in the first half of 2024, with a potential upswing in the latter half.
Industrial and logistics segment leasing trends in Pune
According to CBRE, the I&L sector in Pune is expected to hit record leasing in six years in 2024 with approximately 2.4 msf, accompanied by a high supply of 3.2 msf. The city hosts a significant number of small and medium-scale equipment manufacturers, complementing its robust IT industry. Industrial and logistics parks have emerged as prominent hubs, notably in areas such as Chakan-Talegaon. Other active zones include Sanaswadi-Ranjangaon and Pimpri-Chinchwad.
In 2023, Pune saw substantial leasing in the I&L segment, recording 1.7 msf, a 113% increase from 2022. Warehousing transactions were led by third-party logistics (3PL) players, FMCG and auto and ancillary industries. In the industrial sector, engineering and manufacturing firms, including both newcomers and established players, expanded their presence in the city. Pune’s industrial prowess is well-recognised, particularly in the crucial automotive manufacturing segment. Major firms such as Bajaj Auto, Tata Motors and DaimlerChrysler have established their bases here. Beyond automobiles, Pune boasts a thriving engineering and manufacturing landscape encompassing diverse industries such as machine tools, chemicals and electronics.
| Year-wise I&L absorption-supply in Pune | ||
| Year | Absorption (in msf) | Supply (in msf) |
| 2019 | 1.5 | 0.6 |
| 2020 | 1.2 | 0.0 |
| 2021 | 1.8 | 2.3 |
| 2022 | 0.8 | 1.5 |
| 2023 | 1.7 | 2.4 |
| 2024 (Estimated) | 2.4 | 3.2 |
Anshuman Magazine, chairman and CEO – India, South-East Asia, Middle East and Africa, CBRE, said, “Several factors contribute to Pune’s flourishing real estate landscape. The city’s strategic location offers distinct advantages, while its robust infrastructure ensures seamless business operations. Moreover, Pune’s skilled workforce makes it a highly attractive destination for companies seeking to establish or expand their presence in India. This confluence of advantages solidifies Pune’s position as a premier real estate destination within the country, attracting both investors and occupiers.”
Anuj Dhondy, executive director, advisory and transaction services, CBRE India, said, “Pune’s real estate market is demonstrating robust growth across diverse micro-markets. In the office sector, prime areas like Kharadi, Aundh, Baner, Balewadi and Viman Nagar are witnessing strong demand. This surge in activity is attracting new market entrants, including prominent developers alongside institutional investors seeking a foothold in this flourishing market. The industrial and logistics sector is mirroring this positive trend, with established hubs like Chakan-Talegaon, Sanaswadi-Ranjangaon and Pimpri-Chinchwad thriving alongside the presence of numerous equipment manufacturers. This micro-market diversity caters to a wide range of occupier needs and positions Pune for continued success.”
Office leasing in the city is projected to touch almost 7 mn. sq. ft. – highest in the last six years, while Industrial & Logistics sector leasing is expected to cross 2.4 mn. sq. ft. in 2024
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Dhwani is a content management expert with over five years of professional experience. She has authored articles spanning diverse domains, including real estate, finance, business, health, taxation, education and more. Holding a Bachelor’s degree in Journalism and Mass Communication, Dhwani’s interests encompass reading and travelling. She is dedicated to staying updated on the latest real estate advancements in India.
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