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Pune’s commercial real estate market continues to show resilience, with robust absorption and steady rental growth across key micro-markets.
In FY2025, the city recorded 9.9 million sq. ft. of fresh Grade-A office supply, with 7.7 msf absorbed. Q1 FY2026 saw 4.4 msf added and 2.5 msf absorbed, driven by sustained demand from engineering, manufacturing, and IT-BPM sectors. While supply outpaced absorption, occupancy dipped slightly to 84.2% by June 2025, down from 86% in March 2024. However, with ~9.5 msf of new supply expected in FY2026, occupancy is projected to hold steady between 85.0% and 85.5% by March 2026.
As of June 30, Pune accounts for 11.7% (~120 msf) of India’s Grade-A office stock across the top six cities. The Northwest and Northeast zones dominate, holding 82% of the city’s inventory. Micro-markets like Kharadi, Hinjewadi, and Viman Nagar contribute 43% of Pune’s total supply. Vacancy in Hinjewadi is expected to decline due to limited upcoming supply and strong absorption, while Kharadi and Viman Nagar are likely to maintain current vacancy levels.
The top 10 developers in Pune hold 51% of the city’s Grade-A stock, with seven maintaining occupancy above 90%. Rental rates in Hinjewadi, Viman Nagar, and Yerawada have grown at a CAGR of ~3–4%, while Kharadi has seen 4–5% growth between FY2020–FY2025. Citywide rentals are projected to rise by 3–4% in FY2026.
Between FY2017 and FY2025, Pune’s office market grew at a CAGR of ~7%, matching the pace of India’s top six cities. ICRA projects Pune’s share of national Grade-A supply to remain steady in FY2026, reinforcing its position as a key commercial hub.
