The Pune Real Estate Market H2 2025 demonstrated contrasting yet stable trends, with the office sector recording its highest leasing levels in over a decade, while the residential market entered a phase of measured consolidation, according to Knight Frank India’s latest report India Real Estate: Office and Residential Market, July–December 2025 (H2 2025).
Released on January 07, 2026, the report highlights Pune’s continued strength as a cost-competitive real estate destination, supported by a deep talent pool and a diversified economic base that underpins long-term market fundamentals.
Pune Real Estate Market H2 2025: Office Leasing Reaches 10.8 Mn Sq Ft in 2025
The office segment emerged as a key growth driver in the Pune Real Estate Market H2 2025, with leasing activity reaching 5.7 million sq ft during the July–December period, marking a sharp 60% year-on-year increase.
For the full year 2025, office transactions stood at 10.8 million sq ft, reflecting a 36% YoY growth and making it the strongest year for office absorption in Pune in more than ten years.
Office supply also remained robust. Completions totalled 5.4 million sq ft in H2 2025, up 63% YoY, while full-year completions surged to 14.2 million sq ft, representing a 148% YoY increase.
As a result, vacancy levels rose by 145 basis points YoY to 13.9%, though they remained below the national average, indicating sustained demand rather than market stress. Average transacted office rents remained stable at ₹78 per sq ft per month.
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GCCs and IT/ITeS Drive Office Demand in Pune Real Estate Market H2 2025
Leasing activity during the period was driven by large enterprise mandates, continued expansion of Global Capability Centres (GCCs), and a notable rise in third-party IT/ITeS demand.
Third-party IT/ITeS occupiers emerged as the largest segment in H2 2025, accounting for 31% of total leasing, a significant jump from 11% in the same period last year.
GCCs contributed 27% of leasing activity, while flex space operators accounted for 21%, supported by enterprise-led requirements.
From a location perspective, Peripheral Business District (PBD) East led leasing activity with a 46.6% share in H2 2025, driven by large transactions in Kharadi and Mundhwa.
Secondary Business District (SBD) West also saw renewed momentum, capturing 27.3% of transactions, supported by demand in Baner, Balewadi and Aundh.
Pune Real Estate Market H2 2025: SummaryParameter 2025 2025Change (YoY) H2 2025 H2 2025Change (YoY) Completions inmn sq ft 14.2 148% 5.4 63% Transactions inmn sq ft 10.8 36% 5.7 60% Average transacted rentin INR/sq ft/month 78 1%
Source: Knight Frank Research
Residential Segment in Pune Real Estate Market H2 2025 Enters Consolidation Phase
In contrast to the office sector, the residential market within the Pune Real Estate Market H2 2025 witnessed moderation after multiple years of strong post-pandemic growth.
Housing sales in H2 2025 declined marginally by 5% YoY to 26,552 units. For the full year, residential sales stood at 50,881 units, reflecting a 3% YoY moderation, though volumes remained the second-highest recorded in the last ten years.
New housing launches also moderated, with 29,559 units launched in H2 2025, down 6% YoY. Full-year launches stood at 56,118 units, similarly declining by 6% YoY, as developers adopted a disciplined, corridor-focused launch strategy centred on proven micro-markets.
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Residential Prices Rise Despite Volume Moderation in Pune Real Estate Market H2 2025
Despite softer sales volumes, residential prices continued to rise. Average prices increased 5% YoY to ₹5,016 per sq ft in H2 2025, supported by steady end-user demand in West and East Pune micro-markets such as Baner, Wakad, Hinjewadi, Kharadi and Hadapsar, which benefit from proximity to employment hubs and social infrastructure.
The ₹5–10 million ticket-size segment emerged as the most active, accounting for 46% of residential sales during H2 2025.
This was followed by the ₹10–20 million segment at 24%, reflecting growing acceptance of higher-value homes. Homes priced below ₹5 million accounted for 23% of sales, indicating a shift in buyer preferences.
Unsold inventory increased 11% YoY to 51,653 units in 2025. However, market health indicators remained stable, with the Quarters-to-Sell (QTS) ratio at 4.0 quarters and the average age of unsold inventory at 11.7 quarters, suggesting the majority of stock remains relatively fresh.
Pune Real Estate Market H2 2025 Backed by Demand Depth and End-User Confidence
According to Knight Frank India, the Pune Real Estate Market H2 2025 reflects strong underlying fundamentals.
While office leasing benefited from sustained occupier confidence and diversified demand drivers, the residential segment showed signs of recalibration rather than slowdown, anchored by end-user demand and steady price growth in well-connected locations.
