Pune's Office Market Poised to Surpass 10 Million Sq. Ft. in 2025
Pune's office market is on track to achieve a historic milestone in 2025, with gross leasing volumes projected to exceed 10 million square feet. The city's strategic importance in India's commercial real estate landscape is underscored by robust demand from key sectors including engineering, manufacturing, and IT-BPM.
PuneReal EstateOffice MarketLeasing VolumesCommercial PropertyReal Estate PuneJul 08, 2025
According to Cushman & Wakefield, Pune’s GLV increased by 67% year-on-year and by 54% compared to the second half of 2024. This GLV encompasses all leasing activity in the market, including fresh take-ups, contract renewals by corporates, and pre-leasing activities, reflecting buoyancy in the overall market activity.
Pune contributed 16%, or 6.8 million square feet (msf), to the pan-India GLV of 42 million square feet in the first half of 2025, positioning it alongside Bengaluru (9.9 msf), Mumbai (8.2 msf), and Delhi NCR (7.4 msf).
Moinuddin Patel, managing director of Cushman & Wakefield Pune, stated that with gross leasing volumes projected to exceed 10 million square feet for the first time, Pune’s office market is on track to achieve a historic milestone in 2025, driven by sustained demand across key sectors. “The continued momentum in the flexible workspace segment, the resilience of engineering and manufacturing occupiers, and the steady expansion of Global Capability Centres (GCCs) underscore Pune’s growing strategic importance in India’s commercial real estate landscape,” he said. This growth has also been supported by a healthy pipeline of high-quality supply and a more balanced, occupier-friendly environment.
The strong momentum in the office market is driven by robust demand from the engineering and manufacturing sectors, IT-BPM, and flexible workspaces, which collectively accounted for 4.6 million square feet, or 70%, of the leasing activity in H1 2025. GCC transactions were at 2.7 msf. Around 36% of leasing was by BFSI, 51% from engineering and manufacturing, and 10% from IT-BPM. Additionally, Pune is now the second-largest flexible workspace market. Over the past three years, flexible workspaces in Pune have maintained an average annual footprint of 1.56 million square feet, accounting for about 19% of the city’s overall GLV.
On the supply side, Pune experienced a healthy infusion of new office space in the second quarter, adding nearly 8 million square feet of new supply in the first half of 2025, with 90% categorised as Grade A and A+ office space.
Frequently Asked Questions
What is the projected gross leasing volume for Pune's office market in 2025?
Pune’s office market is projected to exceed 10 million square feet in gross leasing volume (GLV) in 2025.
Which sectors are driving the demand in Pune's office market?
The engineering, manufacturing, and IT-BPM sectors are the primary drivers of demand in Pune's office market.
What is the significance of flexible workspaces in Pune's office market?
Flexible workspaces have maintained an average annual footprint of 1.56 million square feet in Pune over the past three years, accounting for about 19% of the city’s overall GLV, making Pune the second-largest flexible workspace market.
How much new office space was added in Pune in the first half of 2025?
Pune added nearly 8 million square feet of new office space in the first half of 2025, with 90% categorized as Grade A and A+ office space.
What percentage of the pan-India GLV did Pune contribute in the first half of 2025?
Pune contributed 16%, or 6.8 million square feet, to the pan-India GLV of 42 million square feet in the first half of 2025.
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