Pune’s office space market is off to a flying start in 2025, clocking its highest-ever quarterly net absorption at 2.07 million square feet in Q1. This represents a 21% rise over the previous quarter and an impressive 59% year-on-year surge, according to Cushman & Wakefield’s latest Office Market Beat Report.

This performance places Pune among the top contributors to India’s overall office leasing activity. The city accounted for 15% of the total office space absorbed nationwide, just behind Delhi NCR (3.1 million sq ft), Mumbai (2.9 million sq ft), and Bengaluru (2.5 million sq ft).

What are the primary drivers of this surge? A wave of pre-leased spaces is being occupied, particularly by companies in the Banking, Financial Services, and Insurance (BFSI) sector and the steadily expanding flexible workspace segment.

But Pune’s growth story doesn’t end there. The city also recorded an all-time high Gross Leasing Volume (GLV) of 3.5 million square feet, representing a 100% increase from Q4 2024 and an astounding 200% year-over-year growth. GLV, which includes new leases, renewals, and pre-commitments, gives a broader view of market momentum and landlord-tenant dynamics. Pune contributed 17% of India’s total GLV of 20 million sq ft, alongside other major hubs like Bengaluru (4.9 million sq ft) and Mumbai.

On the supply side, Pune added 3.2 million square feet of Grade-A office stock in Q1 2025—another all-time high. That’s a 53% quarter-over-quarter increase and more than 90% year-over-year growth. This new inventory was equally distributed between the SBD East and CBD submarkets, which are now emerging as hotbeds for corporate leasing.

Despite the robust demand, the surge in supply nudged the city’s vacancy rate by 105 basis points, bringing it to 11.23%. Still, Pune remains India’s second-tightest office market, trailing only behind Bengaluru. The strong fundamentals and sustained demand suggest this is a minor blip, not a trend reversal.

Looking ahead, Pune’s office market pipeline remains bullish. The city is expected to witness the addition of ~10 million sq ft in 2025 and ~11 million sq ft in 2026, positioning it as a key player in India’s next wave of commercial growth.

With rising occupier confidence, evolving workspace strategies, and a steady supply of modern office stock, Pune has firmly cemented its position as a national leader in corporate real estate. As the BFSI, tech, and coworking sectors continue to expand their footprints, the city’s commercial landscape is poised for further transformation.