Pune: The Pune Office Sector continued to showcase resilience in Q3 2025, with 2.3 million sq ft of office space transacted despite a 9% year-on-year (YoY) decline, according to Knight Frank India’s latest Residential and Office Market Report (July-September 2025).
The city’s year-to-date (YTD) office leasing activity grew 7%, underscoring strong occupier confidence and sustained business momentum.
During the quarter, 1.1 million sq ft of new office supply entered the market – representing a 60% YoY reduction. However, this supply moderation, coupled with steady demand, contributed to a notable 4% YoY rise in office rentals.
Pune Office Sector Maintains Growth Despite Supply Decline
The Pune office sector growth was driven by Global Capability Centres (GCCs) and flexible workspace operators, both of which view Pune as a cost-efficient business destination supported by skilled talent availability.
P Vilas, National Director – Occupier Strategy & Solutions, Industrial & Logistics, Capital Markets, and Branch Head (Pune), Knight Frank India, commented, “The Pune Office Sector continues to display resilience with YTD growth of 7%.
Occupier demand remains healthy, led by GCCs and flex space operators that see Pune as a cost-effective hub with strong talent availability. With rentals moving upward, the city continues to strengthen its position as a preferred occupier market in India.”
Residential Market Sees 8% Dip but Prices Continue to Rise
In contrast to the office segment, Pune’s residential sales volume fell 8% YoY to 12,118 units during Q3 2025. Nonetheless, average residential prices rose 5% YoY, reinforcing the city’s ongoing premiumisation trend as homebuyers continue to favour larger and more upscale properties.
Vilas added that Pune’s residential sector is undergoing recalibration after the strong growth seen in 2024. “Premium housing continues to drive market momentum, and with supportive policies and infrastructure upgrades, the city’s residential segment is poised for steady performance in the medium term,” he said.
Across major cities, Knight Frank’s data showed that while Pune’s sales volume moderated, its price appreciation outpaced markets such as Ahmedabad and Kolkata, reflecting sustained value in the mid- to upper-segment housing category.
