Pune's Office Real Estate Set for Booming Growth Driven by Financial Services and Life Sciences
Pune: Financial services and life sciences are projected to be key drivers of Pune's office real estate growth, which is expected to reach 14 crore square feet by 2030, according to a report by global commercial real estate firm CBRE. The report, dated November 27, highlights that this surge will be complemented by existing sectors like manufacturing and automobiles.
Pune's inherent strengths are positioning it as a premier office destination, catering to an increasing number of Global Capability Centres (GCCs) across various sectors. The post-pandemic shift towards high-quality workspaces has further accelerated this evolution, said Ram Chandnani, MD of the leasing division of CBRE India.
Pune ranks among the top metro cities for net absorption of office space and boasts one of the lowest vacancy rates. Net absorption jumped to 62 lakh sqft between January and September this year, up from 31 lakh sqft during the same period last year, according to data from property consultancy firm Anarock.
Bengaluru led the country with nearly 10 crore sqft of net absorption, followed by the National Capital Region (NCR) at 82 lakh sqft, while Pune slightly outpaced Hyderabad at 57 lakh sqft.
The city's evolution into a key strategic hub for global firms continues to gain momentum. It is no longer just a cost-effective location but a strategic hub for innovation, finance, and transformation, noted Moinuddin Patel, Pune MD, Cushman & Wakefield. According to ICRA, a significant share of this demand is being driven by GCCs. Industry estimates suggest that GCCs account for 35-40% of total office space demand.
Nearly half of the demand for premium office spaces comes from GCCs in established hubs like Kharadi, Yerawada, Koregaon Park, Hinjewadi, and Wakad. The state government's GCC policy, which aims to attract 400 centres and create 4 lakh high-skilled jobs, is expected to further boost office space requirements.
Besides, flexible workspaces make up about 25% of the office market. Pune's office market demonstrates strong maturity in the flex space segment, enabling new occupiers to enter, supporting micro-market expansion, and accommodating specialized teams like R&D, data analytics, and product development for established firms.
