Pune's Office Market Surges with GCCs Leading the Charge in Q1 2026

Pune, 7th April 2026: Knight Frank India, in its latest report, 'India Real Estate: Office and Residential Market (January – March 2026) Q1 2026,' highlighted that Pune’s office market recorded leasing activity of 3.1 million sq ft in Q1 2026, while new completions stood at 1.0 million sq ft. Office rentals during this period registered a 5% year-over-year increase, with the average transacted rent reaching INR 80.9 per sq ft per month.

Pune Office Market Summary (Q1 2026)

| City | Q1 2025 | Q1 2026 | % Change YoY | |------|---------|---------|--------------| | Pune | 3.7 | 3.1 | -17% |

| City | Q1 2025 | Q1 2026 | % Change YoY | |------|---------|---------|--------------| | Pune | 3.5 | 1.0 | -72% |

Source: Knight Frank Research

End-User Categories

Office leasing in Q1 2026 was driven primarily by Global Captive Centers (GCCs), which contributed 33% of total transactions, amounting to 1.0 million sq ft. Third-party IT services firms followed closely, leasing 0.9 million sq ft, marking a significant 107% increase compared to 0.4 million sq ft in Q1 2025.

| End-User Licensee/Buyer | GCC | Third Party IT | Flex | India Facing | Total | |-------------------------|-----|----------------|------|--------------|-------| | Area transacted in mn sq ft | 1.0 | 0.9 | 0.71 | 0.46 | 3.7 |

Source: Knight Frank Research

Residential Market Update: January – March 2026

Pune’s residential market witnessed residential sales of 12,711 units in Q1 2026, down from 14,231 units in Q1 2025. New launches were at 15,497 units. Additionally, the city’s weighted average residential price reached an all-time high since Q1 2021 of INR 9,975 per sq ft, marking a 5% year-over-year increase.

| City | Q1 2026 | Q1 2025 | YoY % Change | |------|---------|---------|--------------| | Pune | 12,711 | 14,231 | -11% |

| City | Q1 2026 | Q1 2025 | YoY % Change | |------|---------|---------|--------------| | Pune | 15,497 | 16,231 | -5% |

Source: Knight Frank Research

The city’s premium housing segment registered the strongest growth, with sales in the INR 50-100 million range rising by 58%, from 24 units in Q1 2025 to 38 units in Q1 2026. Homes priced between INR 100–200 million recorded the second-highest growth, increasing by 57% year-over-year from 7 units to 11 units. The mid-range segment (INR 5–10 million) remained the most active segment, accounting for 44% of total residential sales, with 5,562 units sold during the quarter.

Ticket-Size Split of Sales

| Ticket Size Categories | <5 mn | 5-10 mn | 10-20 mn | 20-50 mn | 50-100 mn | 100-200 mn | 200-500 mn | >500 mn | Total | |------------------------|-------|--------|---------|---------|----------|-----------|-----------|---------|-------| | Q1 2026 | 2,621 | 5,562 | 3,480 | 999 | 38 | 11 | - | - | 12,711 | | YoY % change | -35% | -17% | 25% | 49% | 58% | 57% | NA | NA | -11% |

Source: Knight Frank Research

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.”