Pune Office Leasing Hits 2018-High Pace: What It Means for Investors in Pune

What happened?

Punekar News, citing Knight Frank India, reported that office space taken up in Pune between January and September 2026 came to 8.8 mn sq ft. That is 18% above the 7.4 mn sq ft seen a year earlier, and the best result for a nine-month window in any year since 2018. Pune also made up 13% of leasing across the eight major Indian markets covered.

According to the report, global capability centres (GCCs) were the biggest occupier group, taking 3.1 mn sq ft against 1.6 mn sq ft a year before, or 35% of the city's deals. Flex operators took 2.5 mn sq ft, which is 28% of the total. Grade A buildings made up 87% of the deals. By quarter, take-up was 3.1 mn sq ft, 3.5 mn sq ft and 2.2 mn sq ft.

On supply, Knight Frank said 6.0 mn sq ft of new offices were completed over the nine months, after a record 14.2 mn sq ft in all of 2025. Vacancy in the third quarter was 13.8%, which is 30 basis points above the level a year earlier. Average transacted rent rose 6% over the year to INR 83.0 per sq ft per month.

Which sectors are affected?

• Pune office market
• Grade A commercial space
• Global capability centres (GCCs)
• Flex workspace operators
• Pune residential rental and sale markets near office hubs

Potential impact

Strong office take-up usually means more people hired locally, and that tends to lift demand for rented and owned homes close to workplaces. Rising office rents point to the same direction for commercial landlords. The effect on home prices is indirect and slow. Our data puts Pune's average at INR 10,500 per sq ft, and nothing in this report ties a price move to any specific locality.

The picture is not one-sided. Vacancy edged higher because a large amount of new space reached the market, and the third quarter was the weakest of the three. Take-up is also leaning on GCCs and flex operators, whose plans can change with global conditions. This is a report on leasing, not a forecast, and it does not promise any rise in home values or rents.