Pune: Office leasing activity in Pune reached 3.1 million sq ft in Q1 2026, according to the latest report by Knight Frank India titled India Real Estate: Office and Residential Market (January–March 2026).
The report highlights that office leasing in the city was largely driven by Global Capability Centres (GCCs), even as overall transaction volumes moderated compared to the previous year.
The data shows that Pune recorded 3.1 million sq ft of office leasing transactions in Q1 2026, marking a 17% year-on-year decline from 3.7 million sq ft in Q1 2025.
New office completions during the quarter stood at 1.0 million sq ft, significantly lower than 3.5 million sq ft in the same period last year, reflecting a 72% drop.
Despite the moderation in office leasing volumes, rental values continued to rise steadily. The average transacted rent increased by 5% year-on-year, reaching ₹80.9 per sq ft per month, indicating sustained demand for quality office spaces in key micro-markets.
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GCCs Dominate Office Leasing Activity
A key trend in office leasing during Q1 2026 was the dominance of Global Capability Centres (GCCs), which accounted for 33% of total leasing transactions in Pune.
GCCs leased approximately 1.0 million sq ft of office space, reinforcing their position as the primary demand drivers in the market.
Third-party IT services firms emerged as the second-largest contributors to office leasing, with 0.9 million sq ft of space leased during the quarter.
This segment recorded a sharp 107% year-on-year growth, compared to 0.4 million sq ft in Q1 2025, highlighting renewed expansion activity among IT service providers.
Flexible workspace operators and India-facing businesses also contributed to office leasing demand, with 0.71 million sq ft and 0.46 million sq ft leased respectively, showcasing a diversified occupier base.
Residential Market Shows Resilience Amid Moderation
Alongside office leasing, Pune’s residential real estate market displayed stable performance in Q1 2026. The city recorded sales of 12,711 units, compared to 14,231 units in Q1 2025, marking an 11% year-on-year decline.
New residential launches stood at 15,497 units, slightly down from 16,231 units in the same period last year. However, property prices continued to climb, with the weighted average residential price reaching an all-time high of ₹9,975 per sq ft since Q1 2021, reflecting a 5% year-on-year increase.
The premium housing segment witnessed the strongest growth. Sales in the ₹5–10 crore range increased by 58%, while homes priced between ₹10–20 crore recorded a 57% year-on-year rise.
Meanwhile, the mid-range segment (₹50 lakh–₹1 crore) remained the most active, accounting for 44% of total residential sales with 5,562 units sold.
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Market Outlook Remains Balanced
P. Vilas, National Director, Occupier Strategy & Solutions, Capital Markets and Industrial & Logistics, Branch Head (Pune), Knight Frank India, said: “Pune’s real estate market showcased steady performance in Q1 2026, with the office segment driven by strong occupier demand and the residential sector demonstrating underlying resilience.
While office leasing moderated to 3.1 million sq ft, GCCs continued to anchor demand, accounting for a third of total transactions, alongside a sharp uptick in third-party IT services activity, highlighting sustained interest from global and technology-driven occupiers.
On the residential front, although sales softened on a high base, the market remains robust, supported by rising prices and stable absorption levels. The growing traction in the premium housing segment reflects evolving buyer preferences, while the mid-income category continues to drive volumes. Overall, steady rental growth, healthy demand, and a stable QTS indicate a well-balanced and resilient real estate market in Pune.”
The report underscores that while office leasing activity saw some moderation, the continued dominance of GCCs, rising rentals, and strong IT sector demand point to sustained long-term momentum in Pune’s commercial real estate market.
