Pune's Office Sector Surges with Record 6.8 Million Square Feet Leased in H1 2025
Pune's office market sets a new leasing benchmark, recording its highest-ever gross leasing volume (GLV) of 6.8 million square feet in H1 2025, driven by robust demand from IT-BPM, Engineering, and Manufacturing sectors.
Commercial Real EstateOffice MarketPuneGross Leasing VolumeFlexible WorkspacesReal Estate PuneJul 08, 2025
In 2025, Pune’s GLV is projected to surpass 10 msf, setting a new historic high year and reinforcing the city’s growing stature in India’s commercial real estate landscape.
This strong momentum was driven by robust demand from sectors such as Engineering & Manufacturing, IT-BPM, and Flexible workspaces, which together accounted for approximately 4.6 msf (close to 70% share) in H1 2025. A total of approximately 2.7 msf of GCC transactions were recorded in H1 2025, with BFSI, Engineering, and Manufacturing, and IT-BPM being the top contributors to the GCC with a share of 36%, 51%, and 10%, respectively.
Flexible Workspaces also continued their upward trajectory, further cementing Pune’s position as the second-largest flex market after Bengaluru. Over the past three years, Flexible Workspaces in Pune have maintained an average annual footprint of 1.56 msf, accounting for around 19% of the city’s overall GLV.
On the supply side, Pune saw a healthy infusion of new office space in the second quarter, with nearly 8 msf of new supply added in H1 2025, comprising primarily 90% Grade A and A+ office space. This increase in supply has resulted in a marginal rise in vacancy levels to 12–13%, a shift that is being viewed positively by market participants. After several years of vacancy rates staying below 10%, this evolution toward a more balanced market environment is facilitating swifter deal closures and offering greater options to occupiers seeking large contiguous spaces.
By the end of 2025, with continued quality additions to stock, vacancy is projected to rise to 15–16%, making it a more balanced market. The city is expected to cross 15 msf in new office supply by year-end, marking a historic high for the Pune office market.
Commenting on the performance, Moinuddin Patel, Managing Director- Pune, Cushman & Wakefield, said, “Pune’s office market is poised to achieve a historic milestone in 2025, with gross leasing volumes projected to exceed 10 million square feet for the first time. This anticipated record is underpinned by sustained demand across key sectors. The continued momentum in the flexible workspace segment, the resilience demonstrated by engineering and manufacturing occupiers, and the steady expansion of Global Capability Centres (GCCs) collectively underscore Pune’s growing strategic importance within India’s commercial real estate landscape. Supported by a healthy pipeline of high-quality supply and a more balanced, occupier-friendly environment, the city is well-positioned to cater to the evolving space requirements of both domestic and global enterprises.”
Frequently Asked Questions
What is Gross Leasing Volume (GLV)?
Gross Leasing Volume (GLV) factors in all leasing activity in the market, including fresh take-up, renewal of contracted terms by corporates, and pre-leasing. It is an indication of overall market activity.
What sectors are driving the demand in Pune's office market?
The demand in Pune's office market is driven by sectors such as Engineering & Manufacturing, IT-BPM, and Flexible Workspaces.
How much new office supply was added in H1 2025 in Pune?
Pune saw a healthy infusion of nearly 8 million square feet of new office space in H1 2025, comprising primarily 90% Grade A and A+ office space.
What is the projected vacancy rate in Pune's office market by the end of 2025?
By the end of 2025, the vacancy rate in Pune's office market is projected to rise to 15–16%, making it a more balanced market.
What is the significance of Global Capability Centres (GCCs) in Pune's office market?
Global Capability Centres (GCCs) are significant in Pune's office market as they contribute to the city's growing strategic importance within India’s commercial real estate landscape, with BFSI, Engineering, and Manufacturing being the top contributors.
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