Pune’s Grade-A office market continues to exhibit robust growth, supported by steady leasing activity and a healthy supply pipeline. The city witnessed 9.9 million sq. ft. of new supply in FY2025 and 4.4 million sq. ft. in Q1 FY2026, driven largely by sustained demand from the engineering & manufacturing and IT-BPM sectors.

Although supply exceeded absorption, leading to a marginal dip in occupancy to 84.2% by June 2025, the market outlook remains stable. With around 9.5 million sq. ft. of fresh supply expected in FY2026, occupancy levels are projected to stay firm between 85.0% and 85.5%, reflecting Pune’s resilient office demand and strong developer performance.

As on June 30, 2025, Pune accounts for 11.7% (~120 msf) of the Grade-A office space across India’s top six cities. Within Pune, the Northwest and Northeast regions collectively hold 82% of the city’s Grade A office stock. The micro markets of Kharadi, Hinjewadi, and Viman Nagar are the top contributors, representing 43% of Pune’s total office supply.

In FY2026, vacancy in Hinjewadi is expected to decline, driven by limited upcoming supply and good net absorption momentum. The vacancy levels are expected to sustain in Kharadi and Viman Nagar in FY2026.

The top 10 developers in Pune collectively hold 51% of the city’s Grade-A office stock, with seven of them maintaining occupancy above 90%. Rental rates across key micro-markets—Hinjewadi, Viman Nagar, and Yerawada have grown at a compound annual growth rate (CAGR) of ~3–4% and Kharadi at 4-5% between FY2020-FY2025. The citywide average rental rate is projected to rise by 3– 4% in FY2026.

Between FY2017 and FY2025, the Pune office market stock recorded a CAGR of approximately 7%, which was in line with the CAGR for India’s top six cities. As on June 30, 2025, Pune contributed around 11.7% of the total office supply of the top six cities, increasing from 10.4% as on March 31, 2022. ICRA projects this shares to remain steady in FY2026.