Real Estate Boom as Industrialists Scramble for Space Post-Demolitions
Pune, February 11, 2025 – The ongoing encroachment removal drive in Kudalwadi and Chikhali has triggered an unexpected real estate surge, with land prices skyrocketing in Chikhali and Chakan MIDC. As thousands of small and medium-sized businesses (SMEs) struggle to relocate after their units were demolished, landowners in nearby industrial zones have sharply increased lease and purchase rates, taking advantage of the sudden demand. Land on lease near Chikhali area is in high demand.
This price hike is creating a crisis for industrialists, many of whom are already burdened with relocation costs, machinery transport expenses, and the loss of business due to the demolitions.
Encroachment Crackdown Leaves Businesses Homeless
The Pimpri Chinchwad Municipal Corporation (PCMC) launched a large-scale demolition drive in Kudalwadi and Chikhali, targeting over 2,200 small industrial units, warehouses, and scrap yards operating without legal approval. In just a few days:
- 2,317 illegal structures have been demolished
- 372 acres of land have been cleared
- More than 1 lakh workers have lost jobs
These businesses, which operated in leased spaces or makeshift sheds, are now scrambling to find alternative locations—and Chikhali & Chakan MIDC have become their top choices.
Real Estate Prices Soar Amid Relocation Rush
With thousands of entrepreneurs and traders now searching for legal industrial land, property prices in Chikhali and Chakan MIDC have surged overnight.
🔺 Land lease rates have increased by 3 to 4 times
🔺 Industrial plot purchase prices have risen by 40-50%
🔺 Warehouse rentals have almost doubled
A local real estate dealer in Chakan MIDC confirmed the trend:
“Earlier, industrial plots in Chakan were available at ₹4,000-₹5,000 per sq. meter. Now, they are selling at ₹7,500-₹9,000 per sq. meter. Landowners know that displaced businesses have no other option.”
This surge is not just affecting industrialists but also transporters, warehouse owners, and logistics operators, who are now forced to pay inflated rents.
Chikhali & Chakan Become the New Industrial Hotspots
With Kudalwadi and Chikhali under encroachment clearance, businesses are desperately looking for legally approved locations where they can operate without fear of demolition.
- Chikhali MIDC: Already an industrial hub, it has seen a 35% increase in land demand in the last month.
- Chakan MIDC: Known for automobile and manufacturing industries, it is witnessing rapid industrial land acquisitions.
- Talegaon & Moshi: Emerging as alternative destinations but facing similar price inflation.
Local landowners and developers are capitalizing on the chaos, raising lease and purchase rates daily as businesses rush to secure space before prices climb even higher.
Industrialists Facing a Dilemma: Buy Now or Wait?
For many small-scale entrepreneurs, this price surge presents a tough decision—should they buy at inflated rates now or wait for prices to stabilize?
Entrepreneurs in plastic, metal, spare parts, fiber, and rubber industries are feeling the pressure, as relocating is their only option to resume business.
“We were already struggling to move our machinery after the demolitions. Now, land prices have shot up. If we don’t act fast, we may be priced out completely,” said a Kudalwadi-based factory owner.
Government Intervention Needed to Control Land Inflation
While PCMC’s crackdown aimed to regulate illegal industrial setups, it has inadvertently created a monopoly for landowners in Chikhali and Chakan MIDC.
Many industrialists are calling for government intervention to control the land price surge, arguing that:
- The government should provide subsidized land to affected businesses.
- Land lease rates should be regulated to prevent exploitation.
- New industrial zones should be developed to meet the rising demand.
Sandeep Belsare, President of Pimpri-Chinchwad Small Industries Association, warned that if land prices continue to rise uncontrollably, Pune’s small industrial sector could face long-term damage.
“Without affordable industrial land, businesses will either shut down or move to other cities, causing massive job losses.”
Future Outlook: Will Prices Stabilize or Keep Rising?
The real estate market in Chikhali and Chakan MIDC is currently in a state of high demand and uncertainty. Experts believe:
✅ If PCMC continues demolitions, prices will rise further.
✅ If more land is made available, the market may stabilize.
✅ Many small businesses may relocate to Tier-2 cities instead of paying inflated prices.
For now, business owners have no choice but to pay premium rates or risk shutting down entirely.
As Pimpri-Chinchwad undergoes this massive industrial transition, one thing is clear—those who control the land hold the power.