India’s real estate sector has witnessed a remarkable 48% growth in investment in Q3 2025, with Pune emerging as the second-largest city attracting real estate investments after Mumbai. Strong fundamentals in Pune’s residential and commercial real estate segments, driven by IT, manufacturing, education, and startups, have fueled investor confidence. The trend is expected to continue, with further growth anticipated in office spaces, retail, mixed-use developments, and data centres by the year-end.
Surge in Real Estate Investment Across India
- The Indian real estate market recorded an investment of approximately Rs 31,600 crore in Q3 2025, marking a 48% increase year-over-year.
- Developers contributed 45% of the investments, while institutional investors accounted for 32%.
- Mumbai leads with a 32% share, Pune follows with 18%, and Bengaluru holds 16%, collectively covering 66% of the country’s real estate investments.
Pune’s Growing Real Estate Strength
- Pune has emerged as the most successful residential market in India, with strong demand in mid and upper-income housing segments.
- Record home sales in 2024 are driven by growing economic sectors like IT, manufacturing, education, and startups.
- Robust metro connectivity and transparent regulatory frameworks have significantly boosted investor confidence.
Commercial Real Estate Expansion in Pune
- Ready office space, retail outlets, data centres, and mixed-use developments are major growth drivers.
- Pune’s office leasing volume increased markedly, with major demand driven by IT-BPM, BFSI, and flexible workspace operators.
- Prominent business districts, including SBD East and West, attract strong leasing activity.
- Increasing net absorption and rising rentals indicate a robust office market.
The FlexInsights Take
Pune’s ascent as India’s second-largest real estate investment destination underscores the city’s evolving commercial real estate landscape alongside its residential boom. Supported by a diverse economic base and an active pipeline of quality office and retail projects, Pune is rapidly shaping itself as a key real estate hub. Investors looking for sustainable growth and strong returns should closely watch Pune’s expanding office market and amenity-rich mixed-use developments, which are well-poised to attract continued demand from both domestic and international players through the rest of 2025 and beyond.
