Pune sees a major boom in Industrial and Logistics
Pune’s industrial and Logistics (I&L) sector has seen major growth with a 131% year-on-year increase. It has reached 1.4 million sq. ft in the first three quarters of 2023. This impressive surge is in comparison with 0.6 million sq. ft in 2022 during the same period. This was carried out by ‘India Markеt Monitor Q3 2023’ rеport by CBRE South Asia Pvt. Ltd.
Key Takeaways
- Third-party Logistics (3PL), fast-moving consumer goods (FMCF), auto & ancillary sectors have seen a major boom in their growth.
- Pune also expanded 1.8 million sq. ft of supply in the same period showcasing its growth-driven approach.
- Pune’s performance in three quarters of 2023 recorded 0.5 million sq. ft in leasing and an equal supply addition of 0.5 sq. ft
- On a national basis, the I&L sector of Pune is predicted to grow a five-year high in space consumption almost reaching 36-38 million sq. ft in 2023.
- Besides, leasing amongst the top 8 cities skyrocketed to 27.3 million sq. ft, with Mumbai, Chennai, and Delhi-NCR contributing 56% in total.
If we look at it sector-wise, third-party logistics lеd with a 45% share, followed by Enginееring & Manufacturing at 15%, and Auto & Ancillary at 7%. Whereas, FMCG contributed 6% and Elеctronics & Elеctricals accountеd for 5%.
On a regional level, in the third quarter of 2023, Chennai emerged to be on top in terms of space absorption with 2.1 million sq. ft, followed by Bangalore and Mumbai. Talking about leasing during this time, Third-party Logistics (3PL) companies were on top significantly at 50%, while Engineering and manufacturing contributed 13%, and Electronics and electrical companies stood with an 8% share.
Notably, domestic corporations were the dominant players in leasing activities, commanding a substantial 59% share, with EMEA and APAC corporations contributing 25% and 12%, respectively.
The I&L sector too saw a massive growth of 92% Y-o-Y increase and 12% quarter-on-quarter growth in warehouse completions during the July-Sep’23 quarter.
Conclusion
In conclusion, Pune has grown impressively in the year 2023. The main sectors that grew on a remarkable level were third-party logistics, FMCG, and Auto and Ancillary. Pune has proactively worked towards facilitating growth and employment in many sectors.
Source – PunekarNews
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