2025: A game-changing year for Pune’s CRE

Pune’s commercial real estate (CRE) market in 2025 stands at an inflection point. After years of rapid expansion led by IT/ITES occupiers and Global Capability Centers (GCCs), the city is now defined by a flight to quality and a sharper focus on ecosystems over mere square footage. While macro headwinds moderated early leasing, Pune’s fundamentals—talent, infrastructure, and affordability—make it one of India’s most resilient and attractive office destinations. For the first time, Pune has supply spread across all micromarkets, rather than concentrated in a few corners. Occupiers can now match office strategies to talent pools, with both boutique formats and scalable office parks available. Notably, large-format campuses are making a comeback as firms consolidate into integrated work environments.

1. Demand Trends: From Quantity to Quality: GCC Momentum: BFSI, automotive R&D;, and engineering design remain growth engines, with several European and Asian mandates secured in Hinjewadi and Kharadi. Flight to Quality: Tenants are moving out of Grade B and older stock into Grade A+ campuses that prioritize sustainability, wellness, and technology integration. Flex & Managed Space: Pune demonstrates nearly 30% absorption from flex operators—the highest in the country. Many MNCs enter Pune through flex operators before graduating into independent campuses. This reinforces Pune’s distinction as the only non-capital city among India’s top five CRE hubs. 

2. Supply Side: Controlled but Strategic: After the supply peaks of 2022–23, 2025 completions are more measured. Developers are phasing projects to align with demand. – Baner–Balewadi: Rising as a boutique-commercial hub for consulting firms, fintechs, and family offices. – Kharadi & Hinjewadi: Continue to dominate with GCC expansions and tech occupiers. – CBD (Koregaon Park & Bund Garden Road): Limited supply but steady demand for luxury, niche office formats. Notably, occupiers are prioritizing talent catchments over office availability, a structural shift in decision-making. 

3. Rentals, Vacancy & Submarket Snapshot: Rents across prime submarkets such as Baner, Balewadi, and Kharadi have held steady with selective upward movement, while secondary markets remain stagnant. Citywide vacancy is in the mid-teens, though effective vacancy in prime Grade A+ assets is significantly lower. Prime submarkets such as Baner, Balewadi, and Kharadi have even seen rents inch upward, while secondary areas remain flat.

4. Key Drivers: – Sustainability: Green-certified campuses are now essential, not optional. – Talent: Pune continues to draw millennials and Gen Z professionals with its education ecosystem and lower living costs compared to Bengaluru or NCR. – Infrastructure: The metro expansion, Ring Road, and airport redevelopment are cementing long-term investor and occupier confidence. 

5. Outlook: The Next Growth Cycle: Leasing in 2025 is projected at 5–6 million sq. ft. of annual absorption, with demand driven by GCC consolidations, flex operators, and select domestic enterprises. Medium term, Pune is positioned to lead the next wave of GCC growth in India. Developers delivering curated, scalable campuses balancing flexibility, sustainability, and lifestyle will shape Pune’s future skyline.