Pune: The Pune office market posted its strongest first-half performance in over a decade, according to Knight Frank India’s latest report titled India Real Estate – Residential and Office (January–June 2025).
Office space leasing surged to 5.1 million sq. ft. in H1 2025, marking a 17% year-on-year (YoY) growth.
The city also witnessed a record-breaking increase in office completions, which rose by a staggering 264% YoY to reach 8.8 million sq. ft.
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Pune Office Market: Demand Remains Resilient
The bulk of this new supply in Pune office market was concentrated in PBD East, Kharadi, and SBD East. Despite this surge, vacancy levels increased to 14.9%; however, demand remained resilient, driven by major enterprise deals and occupiers’ preference for flexible workspace solutions.
Flex spaces led the charge in Pune office market, accounting for 44% of total leasing activity. Global Capability Centres (GCCs) followed, with their share rising sharply to 25% – up from just 3% in the same period last year – highlighting Pune’s emergence as a cost-effective hub for high-value global operations.
“Pune’s commercial real estate continues to diversify in terms of both occupier profile and geographic reach,” said P Vilas, National Director – Occupier Strategy & Solutions, Knight Frank India.
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“The city’s strategic appeal is further strengthened by upcoming infrastructure projects like the Pune Metro, enabling expansion into newer growth corridors.”
Rents remained stable, increasing 3% YoY to an average of ₹77/sq. ft. per month. The sustained demand, despite rising supply, signals strong market fundamentals and occupiers’ willingness to pay a premium for quality and flexibility.
