Chakan-Talegaon Industrial Corridor Captures 80% of Pune's Warehouse Leasing Market
The Chakan–Talegaon industrial belt, a major hub for automobile manufacturing units, has emerged as the dominant force in Pune's warehousing sector. According to a comprehensive report by Knight Frank India, this corridor accounted for nearly 80% of the city's total warehouse leasing transactions. This remarkable growth coincides with a significant surge in the total warehousing space leased by manufacturers across Pune, which skyrocketed to 1.6 crore square feet in 2025, up sharply from 86 lakh square feet recorded in the previous year.
Manufacturing Expansion Fuels Warehouse Demand
The substantial increase in leasing activity has been primarily driven by manufacturing companies, with logistics firms following closely behind. This pattern clearly indicates that the demand is being fueled by the expansion of manufacturing operations rather than distribution requirements alone. P Vilas, the Pune branch head of Knight Frank India, provided insights into the market's trajectory, stating, "The market is expected to continue expanding steadily, with the Chakan–Talegaon corridor leading the growth while surrounding areas absorb the spillover demand."
Industry Recognition and Emerging Destinations
Industry body Credai has officially identified Chakan as Pune's leading industrial warehousing hub, commanding a substantial 31% share of the market. Khed follows with a 20% share, while Talegaon holds 14%. Meanwhile, real estate services firm JLL has highlighted Talegaon as an emerging industrial destination, attributing its rise to its strategic proximity to Mumbai and the increasingly limited availability of land in Chakan.
Infrastructure and Multi-Modal Logistics Parks
The Chakan–Talegaon corridor is strategically positioned as part of one of the 35 multi-modal logistics parks (MMLPs) planned across India. A Colliers India report outlines that these parks are designed to offer integrated facilities, including warehousing, cold storage, customs clearance, and advanced cargo handling capabilities. They are anticipated to significantly reduce transit times, lower logistics costs, ease traffic congestion, and enhance overall supply chain efficiency.
Land Shortages and Rental Dynamics
Last month, MIDC CEO P Velrasu noted that most manufacturing companies prefer establishing plants in Chakan due to the strong presence of automobile companies in the area. This preference has led to a severe shortage of land in Chakan, despite ongoing infrastructure challenges such as traffic congestion, accidents, and logistical delays. To address this issue, MIDC is actively considering land acquisition in Talegaon to encourage new investments and alleviate pressure on Chakan.
Warehouse rental rates in Chakan reflect its premium status, being significantly higher than in other industrial areas like Wagholi, Ranjangaon, and Shirwal. According to Knight Frank data, premium warehouse rents in Chakan and Talegaon range between Rs 26 and Rs 33 per square foot per month. In comparison, Lonikand sees rates of Rs 20–25, while Ranjangaon commands Rs 23–25.
Peripheral Contributions and Market Distribution
While the Chakan–Talegaon corridor dominates, the Wagholi–Ranjangaon corridor accounted for approximately 5% of warehouse leasing transactions. Peripheral locations contributed the remaining 15%, largely driven by specific manufacturing requirements that necessitate alternative locations.
The robust growth in Pune's warehousing sector underscores the city's evolving industrial landscape, with the Chakan–Talegaon belt at its core, poised for continued expansion and development in the coming years.
