Pune posted a record 3.5 million sq ft in leasing, driven by BFSI, flex operators, and large-format deals. Net absorption hit 2.07 million sq ft, even as 3.2 million sq ft of new supply pushed vacancy to 11.23%. Rents held steady, signaling continued strength and tenant confidence in quality stock.
Pune’s office market opened in 2025 on a powerful note. With historic leasing volumes, strong sectoral participation, and firm rentals despite record new supply, the city reaffirmed its position as one of India’s most dynamic commercial hubs.
All-Time High Leasing Activity
The city witnessed a record 3.5 million sq. ft. of office space leased in Q1 2025 — a 2x jump quarter-on-quarter and 3x increase year-on-year.
- Over 70% of this leasing came from large-format deals (>100,000 sq. ft.), indicating deep occupier conviction.
- BFSI (29%) and flex space operators (27%) led sector-wise leasing activity.
- Submarkets like SBD East (45%) and PBD West (35%) were the most active leasing zones.
Fresh Leases + Pre-Commitments Drove the Surge
A major shift was visible in leasing patterns:
- Fresh leases accounted for 46% of deals (~1.6 MSF)
- Pre-commitments contributed 49% (~1.7 MSF)
- Together, these indicate strong forward-planning and expansion momentum
Absorption Hits Highest in Five Quarters
Pune recorded net absorption of 2.07 MSF, the highest in over a year:
- 21% higher than Q4 2024
- 59% higher than Q1 2024
- GCCs absorbed ~1.2 MSF, contributing to nearly 20% of India’s overall GCC leasing
Supply Peaks, Vacancy Edges Up
Q1 also saw the highest-ever Grade-A supply infusion in Pune at 3.2 MSF:
- Split between SBD East and CBD submarkets
- Despite high demand, vacancy rose slightly by 105 bps to 11.23%
- Yet, Pune remains India’s second-tightest office market after Bengaluru
Rents Hold Steady Amid Supply Boom
Despite the massive supply addition:
- City-wide stock-weighted rents rose 0.5% to ₹89.9 per sq. ft./month
- This reflects market confidence and sustained tenant appetite for quality spaces
Notable Deals This Quarter
Several large tenants made headline-worthy commitments:
- Infosys leased 1.1 MSF in Gera Commerzone (SBD East)
- Tablespace took 0.9 MSF in Godrej KP Phase 1 (CBD)
- Citi Corp signed two major pre-commitments totalling ~770,000 sq. ft.
- KPIT and WNS closed fresh deals in PBD zones
Outlook: A Strong Pipeline Ahead
Pune’s growth story is far from over. The city has a 10–11 MSF supply pipeline lined up for 2025–2026. With GCCs, BFSI, and Flex operators driving the next wave of demand, Pune is poised to stay at the forefront of India’s office market evolution.
