Industrial Property Consultant

The micro market of Chakan and Talegaon is situated
along NH-4, connecting Pune and Mumbai.
Automobile giants such as Volkswagen, General
Motors, and Mercedes Benz have set up their
manufacturing base in this micro market. A number of
Auto OEM's (original equipment manufacturers) have
decided to go slow with their productions due to the
prevailing economic scenario, leading to an
uncertainty regarding new investments and spatial
expansion.

Google Link :
Chakan MIDC
https://maps.google.co.in/maps?q=18.7438977217,+73.829414182&ie=UTF-8&hq=&hnear=0x3bc2b5e1bb13926f:0x6b38e7f51f2713a7,18.7438977217,+73.829414182&gl=in&ei=1D2nUeqKOoOurAeOp4DIBQ&ved=0CC8Q8gEwAA

The micro market of Sanaswadi and Ranjangaon,

situated towards the North-East part of the city
connecting Pune to Ahmednagar is classified under the
five star industrial area category of Maharashtra
Industrial Development Corporation (MIDC). The
Sanaswadi market is slowly getting saturated due to the
influx of engineering companies relocating from
Ranjangaon, as well as companies from other
locations looking for expansion.Rental values remained
largely stable and were in a range of INR 20-25/sq
ft/month.

Google Link :
Sanaswadi Industrial Area :

https://maps.google.co.in/maps?q=18.6658418456,+74.0996581517&ie=UTF-8&hq=&hnear=0x3bc2da6a5e685bfd:0xfd5ccc1a6a3addc5,18.6658418456,+74.0996581517&gl=in&ei=1EanUb7WN4ytrAf6soGYBA&ved=0CCwQ8gEwAA

Ranjangaon MIDC :

https://maps.google.co.in/maps?q=18.6658418456,+74.0996581517&ie=UTF-8&hq=&hnear=0x3bc2da6a5e685bfd:0xfd5ccc1a6a3addc5,18.6658418456,+74.0996581517&gl=in&ei=1EanUb7WN4ytrAf6soGYBA&ved=0CCwQ8gEwAA

Pimpri and Chinchwad did not witness any transaction activity as

the market is over saturated and has limited scope for

absorption. Owing to high-quality infrastructure

facilities and good connectivity, Hinjewadi (situated off

the Mumbai Bangalore Bypass) is a preferred

destination by the R&D and engineering units. This

region has limited supply of industrial zone sites.The rental

values witnessed a dip by 5-6% and were in the range

of INR 22-25/sq ft/month.

The warehousing and logistics industry continued to

witness an increase in market activity during the first half

of year 2012. The demand for logistic and warehousing

spaces was not only limited to leading cities such as

NCR (National Capital Region), Mumbai and

Bangalore, but was also spread across leading tier II

cities as well.

A popular trend witnessed during this review period has

been consolidation of multiple facilities into a more

efficient asset with better quality & modern amenities.

Most of the third party logistics (3PLs) companies are

also in the process of merging smaller warehouses into

big modern qualitative assets to showcase their

capabilities to gain more business.

Private Equity Funds have gradually consolidated their

land banks and moved some of their old assets up the

value chain by developing warehouses by tying up with

local partners.

A large numbers of domestic developers are moving up

the value chain by taking initiatives to provide modern

logistics parks with quality warehouse facilities. They are

also building assets with better specifications and

support infrastructure. They are encashing their old but

strategically located land banks to deliver solutions for

various specialized requirements such as service parts storage, in city retail distribution, repair and return etc.

Rental values increased by 3-7% across most micro

markets, due to an increase in demand for warehousing

and logistics facilities. The coming months are likely to

witness additional supplies across cities, which will

positively impact transaction activity in these locations.

Thursday, 30 May 2013