Pune Grade-A Office Market is demonstrating sustained strength and stability, backed by a healthy balance of supply and demand across key micro-markets.
According to recent data, Pune Grade-A office market witnessed 9.9 million square feet (msf) of new supply in FY2025 and an additional 4.4 msf in Q1 FY2026, while net absorption stood at 7.7 msf and 2.5 msf respectively.
Steady Demand and Occupancy in Pune Grade-A Office Market
Driven by continued leasing activity in the engineering & manufacturing and IT-BPM sectors, the Pune Grade-A Office Market has shown resilience despite an influx of new supply.
The overall occupancy rate slightly decreased to 84.2% by June 2025 from 86% in March 2024. However, the market is expected to sustain occupancy levels between 85.0% and 85.5% by March 2026, even with an anticipated supply pipeline of approximately 9.5 msf.
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Pune Grade-A Office Market: Regional Distribution and Key Micro-Markets
As of June 30, 2025, Pune accounts for nearly 11.7% (around 120 msf) of the total Grade-A office stock across India’s top six cities.
The Northwest and Northeast corridors dominate the city’s supply, contributing 82% of the total stock. The micro-markets of Kharadi, Hinjewadi, and Viman Nagar remain leading hubs, jointly representing 43% of Pune’s total office inventory.
Vacancy in Hinjewadi is expected to decline in FY2026, supported by strong absorption and limited new completions, while Kharadi and Viman Nagar are projected to maintain stable vacancy levels.
Developer Landscape and Rental Growth
The top 10 developers in Pune collectively control 51% of the city’s Grade-A office market stock, with seven maintaining occupancy above 90%.
Rental rates in prominent micro-markets – Hinjewadi, Viman Nagar, and Yerawada – have grown at a CAGR of 3–4%, whereas Kharadi witnessed a higher rental appreciation of 4–5% between FY2020 and FY2025. Overall, average citywide rentals are projected to increase by 3–4% in FY2026.
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Long-Term Growth and National Share
Between FY2017 and FY2025, the Pune Grade-A office stock expanded at a CAGR of approximately 7%, mirroring the growth trends of India’s top six cities.
Pune’s share of national Grade-A office space increased from 10.4% in March 2022 to 11.7% in June 2025 and is likely to remain stable through FY2026, according to ICRA projections.
About ICRA
ICRA Limited is one of India’s leading credit rating agencies. It offers a comprehensive range of rating services and solutions to the corporate, financial sector, and structured finance segments.
