The blaze was noticed at around 8.50 AM in an under construction building, housing decoration and tent material and quickly spread, Nashik chief fire officer Anil Mahajan said.
About 16 fire tenders were pressed into service that managed to douse the flames, he said.
No casualties were reported as the people inside the building rushed outside to safety as soon as the flames erupted, he said.
On the cause of the fire, Mahajan said it was yet to be ascertained, though the people inside the building told fire officials that they were cooking food when a synthetic material in the vicinity caught fire.
The structure was under construction and only a few slabs and columns had been laid, he said.
Further investigations were on.