Pune’s commercial real estate market is expected to continue its growth trajectory, driven by infrastructure improvements, a booming economy, and increasing demand for office spaces, making it a promising investment destination.
Anuj Dhody, Executive Director, City Head – Pune & Head – Advisory & Transaction Services, CBRE, pointed out that recent industrial policy announcements are expected to be a game-changer, fuelling competition not only between Gujarat and Maharashtra but also with newer entrants like Uttar Pradesh and Telangana.
“The competition between states is intensifying,” Anuj noted. "Maharashtra’s strong industrial base, coupled with infrastructure projects like metro lines, elevated corridors, and expanded airports, positions Pune as an attractive destination for investors."
With infrastructure development, Pune’s improved accessibility to international markets further strengthens its appeal to both foreign and domestic investors. Anuj Dhody
Sustainable and High-Quality Developments
The public-private partnership model, especially in infrastructure, has proven effective in Pune's growth. By involving both sectors, the city fosters a collaborative environment that accelerates development while ensuring that the needs of both the public and private sectors are met. This approach has led to rapid urbanization, with businesses and residents alike benefiting from improved transportation, energy-efficient buildings, and advanced logistics hubs.
Meenakshi Jhamtani, Executive Director of Jhamtani, spoke about the rising trend of sustainability in Pune’s real estate market, "Pune is aligning itself with global sustainability trends. Green building certifications, sustainable construction techniques, and wellness-focused designs are becoming the new standard. These trends help reduce operational costs, making projects more attractive to both developers and end-users. The growing demand for integrated townships and mixed-use developments shows a clear shift in how people view their living and working environments. Developers are now striving to create communities where residents can live, work, and play all within the same space, thus minimizing the need for long commutes and fostering a healthier, more balanced lifestyle.”
The role of technology in shaping Pune’s real estate market cannot be emphasized enough. The integration of artificial intelligence and automation systems into commercial projects has become increasingly common. While these innovations come with a higher upfront cost, they offer greater returns in terms of rental yields, occupancy rates, and long-term capital appreciation.
Pune is witnessing technology-driven, sustainable, and quality-focused projects that will attract more investors seeking high returns and long-term value. Meenakshi Jhamtani
As global investors increasingly demand environmentally conscious, socially responsible, and well-governed developments, Pune's adoption of ESG (Environmental, Social, and Governance) standards positions the city as an appealing destination for sustainable investments.
S. Salai Kumaran, CEO of Indialand Group, shed light on innovations and improvements in industrial parks and warehousing. “Technology innovation is key to reducing costs while maintaining high standards in construction. One of the major challenges we face in India is the rising labor costs. From 20% of the total cost, labour now accounts for up to 40%. To combat this, we must focus on technologies that reduce labour dependency and improve efficiency.”
Salai also highlighted the integration of AI and robotics in the warehousing and logistics sector. By leveraging technologies such as machine learning, AI, and automated systems, businesses can significantly reduce operational costs while increasing efficiency. These innovations not only lower costs but also provide faster and more reliable services for end consumers, contributing to a thriving industrial ecosystem in Pune.
The key to success in industrial development is finding technologies that optimize costs and improve efficiency to deliver high-quality projects at competitive prices. S. Salai Kumaran
Prasad Lahane, Vice President – Sales & Marketing, Khed City, shared his observations on the shift in industrial investment trends, particularly after the COVID-19 pandemic. "Pre-COVID, companies were more inclined to rent industrial space, but now there is a significant shift towards owning the land and building customized facilities. This long-term investment approach is driving growth in industrial development, especially in Pune. The entry of major global players like Hyundai is a testament to the city's growing appeal as a long-term industrial hub. Such investments create job opportunities and boost the local economy, adding another layer of stability to Pune's development."
There has been a noticeable shift from rented facilities to long-term investments in Greenfield projects. Prasad Lahane
Gerald Manoharan, Partner at JSA, spoke about the importance of social infrastructure, climate conditions, and the overall lifestyle that Pune offers. "Pune has managed to preserve its unique identity. Despite rapid urbanization, the city has maintained its cosmopolitan charm, offering a balanced lifestyle for both residents and investors. This is a big plus for those considering long-term investments in the city. Pune's excellent healthcare facilities, climate, and social structure make it an ideal location for investors and corporates due to its quality of life. Investors are increasingly looking for secure, long-term assets, and Pune's real estate sector is well-positioned to provide that."
Pune's pricing structure, combined with its high quality of life and growing infrastructure, makes it a solid investment destination. Gerald Manoharan
From robust government policies and infrastructure developments to the growing focus on sustainability and technology in real estate and industrial parks, Pune's future looks promising. The city's balance of modern urbanization and its preserved quality of life make it an attractive proposition for both residents and investors.
- The importance of state and federal policies supporting growth is evident. Infrastructure projects, such as the metro lines and other development initiatives, are critical for enhancing the commercial appeal of the city.
- There is a growing demand for integrated developments that combine residential, commercial, and retail spaces. These developments not only cater to practical needs but also enhance the lifestyle of residents and businesses alike.
- The increasing interest in ESG (Environmental, Social, and Governance) factors also has a significant influence on investment decisions in Pune’s real estate sector.
- Trends toward Greenfield investments have also been observed in sectors such as automobiles, technology, logistics, and manufacturing. This diversification further strengthens Pune’s position as a leading industrial hub.
