Pune’s office space market witnessed remarkable growth in 2024, recording an impressive 19% increase in leasing activity. According to Knight Frank India, the city achieved 80 lakh square feet of leased space, driven by strong demand in the year’s first half and consistent activity in the latter half despite minor market corrections.

Key Drivers of Growth

Pune’s office market surge was fueled by multinational corporations and technology firms favouring Grade A office spaces. Flexible workspaces emerged as a significant trend, accounting for 35% of total leasing activity. “The rise of flexible office solutions reflects a shift in occupier preferences, signalling a more adaptive and dynamic market,” noted the report.

New supply also played a pivotal role, with Pune adding 57 lakh square feet of office space in 2024—a 58% year-on-year growth. This robust addition underscores the city’s ability to meet the growing demand for premium workspaces.

Leasing Trends and Tenant Profiles

In the second half of 2024 alone, leasing activity reached 36 lakh square feet. Global firms, particularly those establishing global capability centres (GCCs), were major contributors, capturing 35.9% of the total market share. Co-working spaces also dominated, emerging as the largest tenant category and occupying nearly one-third of the city’s leased space.

Rising Rentals and Demand for Premium Spaces

Pune’s office rental rates rose to ₹77 per square foot per month in 2024, surpassing pre-pandemic levels. Developers are increasingly focusing on Grade A office spaces to cater to the growing demand for premium, well-equipped workspaces. This trend reflects occupiers’ priorities for quality real estate that aligns with their operational and employee needs.

National Context and Pune’s Position

With 80 lakh square feet of leasing activity, Pune stands among India’s top-performing office space markets. Comparisons reveal Bengaluru leading with 181 lakh square feet, followed by Delhi-NCR (127 lakh sq ft), Mumbai (104 lakh sq ft), and Hyderabad (103 lakh sq ft). Pune’s consistent growth highlights its rising prominence as a business hub.

Optimistic Outlook for 2025

Experts anticipate that Pune’s Grade A office spaces will exceed 10 crore square feet in 2025, further solidifying its position as a global business destination. The city’s focus on innovation, flexibility, and sustainability will attract significant investments and strengthen its competitive edge in India’s commercial real estate market.

With its impressive growth trajectory and rising demand for premium spaces, Pune is well-positioned to remain a key player in India’s dynamic office leasing landscape.