Pune’s commercial real estate market has witnessed one of its largest office space rental deals, with Panchshil Business Spaces Pvt Ltd leasing over 7.71 lakh sq. ft. to CitiCorp Services India Pvt Ltd. The 10-year agreement, valued at approximately ₹1,096 crore, reinforces Pune’s growing prominence as a key business hub.

The leased space in Panchshil Business Hub, Kharadi, spans 10 floors (7th to 16th) and was finalized through three separate transactions. According to property registration documents accessed by CRE Matrix, the first lease covers 3.07 lakh sq. ft. across the 13th to 16th floors with a monthly rent of ₹2.70 crore over 10 years. The second transaction spans 2.34 lakh sq. ft. on the 10th to 12th floors, leased for 9.5 years at ₹2.06 crore per month. The final deal secures 2.29 lakh sq. ft. across the 7th to 9th floors for nine years, starting at ₹2.01 crore per month. A 15% rent escalation clause applies every 36 months.

“This CitiCorp deal in Pune, securing over 770,000 sq. ft. at ₹88 per sq. ft., is a landmark deal,” said Abhishek Kiran Gupta, CEO and co-founder of CRE Matrix. “It underscores Pune’s commercial market’s continued strength and strategic importance, which we highlighted in our Q4CY24 India Office report. It is one of the largest transactions we have seen.”

The lease agreement includes 770 car parking spaces and 1,185 two-wheeler parking slots, with CitiCorp depositing ₹20.35 crore as security. The lock-in period ranges between four to five years, and the lease will commence in phases between April 1, 2025, and April 1, 2026.

Gupta emphasized the broader impact of the deal, stating, “The sheer scale of the 10-year, ₹1,000 crore-plus commitment demonstrates the long-term value and confidence major corporations place in Pune. This deal reinforces our analysis and affirms why Pune remains a top choice for strategic growth.”

Pune’s commercial real estate market has seen a surge in high-value deals. Recently, coworking giant Awfis leased 2.7 lakh sq. ft. in Kharadi for five years at an annual rent of ₹15.77 crore. In another significant transaction, Mindspace Business Parks REIT renewed its lease of 3.75 lakh sq. ft. in Commerzone, Yerwada, to Nvidia Graphics Private Limited for ₹3.03 crore per month.

The trend extends beyond Pune. In Mumbai, global financial giant Morgan Stanley leased 1 million sq. ft. for over nine years at a starting monthly rent of ₹15.96 crore. The space in Oberoi Commerze III in Goregaon East spans 16 floors.

With major corporations continuing to expand their footprint in Pune and beyond, the Indian commercial real estate market remains a stronghold for long-term business investments.