July 4, 2025: Knight Frank India in its latest report, India Real Estate – Residential and Office (January – June 2025) cited that Pune’s office market recorded strong leasing volumes, with 5.1 mn sq. ft. transacted in H1 2025 – up 17% YoY, making it the best H1 performance in over a decade. The period also saw an unprecedented surge in office completions, totalling 8.8 mn sq. ft., a massive 264% YoY growth, primarily in PBD East, Kharadi, and SBD East.
Despite a sharp rise in supply pushing vacancy levels to 14.9%, the demand remained robust, underpinned by large-scale enterprise deals in Q1. Flex space operators led leasing activity, accounting for 44% of transactions, followed by Global Capability Centres (GCCs), which saw a significant rise in share to 25%, up from just 3% in H1 2025. This reflects Pune’s growing position as a cost-efficient, talent-rich hub for complex global operations.
Market Update: January – June 2025
MARKET SUMMARY
| Parameter | 2024 | 2024 Change (YoY) | H1 2025 | H1 2025 Change (YoY) | Q2 2025 | Q2 2025 Change (YoY) |
| Completions in mn sq ft | 5.7 | 58% | 8.8 | 264% | 5.3 | 711% |
| Transactions in mn sq ft | 8.0 | 19% | 5.1 | 17% | 1.4 | -43% |
| Average transacted rent in INR/sq ft/month | 77 | 5% | 77 | 3% | – | – |
Note: 1. 1 square metre (sq m) = 10.764 square feet (sq ft)
Source: Knight Frank Research
| Parameter | H1 2025 | Change (YoY) |
| Stock in mn sq ft | 105.7 | 12.9% |
| Parameter | H1 2025 | Change (YoY) |
| Vacancy (%) | 14.9% | 410 basis points increase |
P Vilas, National Director – Occupier Strategy & Solutions, Industrial & Logistics, Capital Markets, and Branch Head (Pune), Knight Frank India, said, “Pune’s commercial real estate continues to evolve with increasing diversity in occupier profile and geographic spread. The surge in flex space and GCC demand reaffirms the city’s resilience and attractiveness to global and domestic firms alike. With key infrastructure upgrades like the Pune Metro advancing, and demand shifting to newer corridors, Pune is poised to strengthen its position as a strategic office destination in India.”
Rents remained stable with a 3% YoY increase, averaging INR 77/sq. ft./month, indicating occupiers’ continued willingness to pay a premium for flexibility and quality.
Residential Market Update: January – June 2025
Pune’s residential real estate market showed stable momentum in H1 2025, despite the record highs of 2024. Sales stood at 24,329 units, a marginal 1% YoY dip, while new launches fell by 5% YoY to 26,559 units, indicating a market transitioning to a more measured phase.
Prices continued their upward trend, recording a 6% YoY increase to INR 4,868/sq. ft., led by sustained end-user demand, premium launches in West and East Pune, and rising land and construction costs. Homes priced above INR 10 mn now contribute 25% of overall demand, up from 20% last year, signalling a clear shift toward premiumisation. Meanwhile, the sub-INR 5 mn segment’s share declined to 28% in H1 2025 from 34% in H1 2024.
MARKET SUMMARY
| Parameter | 2024 | 2024 Change (YoY) | H1 2025 | H1 2025 Change (YoY) | Q2 2025 | Q2 2025 Change (YoY) |
| Launches (housing units) | 59,548 | 40% | 26,559 | -5% | 10,328 | -30% |
| Sales (housing units) | 52,346 | 6% | 24,329 | -1% | 10,098 | -20% |
| Average price in INR/sq ft | 4,778 | 6% | 4,868 | 6% | – | – |
Note: 1 square metre (sq m) = 10.764 square feet (sq ft)
Source: Knight Frank Research
| Parameter | H1 2025 | Change (YoY) |
| Unsold inventory (housing units) | 48,646 | 14% |
| Parameter | H1 2025 |
| Quarters to Sell (in quarters) | 3.7 |
| Parameter | H1 2025 |
| Age of unsold inventory (in quarters) | 1 |
P Vilas, National Director – Occupier Strategy & Solutions, Industrial & Logistics, Capital Markets, and Branch Head (Pune), Knight Frank India, added, “Pune’s residential market remains fundamentally strong, supported by steady end-user demand, competitive pricing, and ongoing infrastructure upgrades. While launches have moderated after a record-breaking 2024, buyer appetite remains intact, particularly in emerging micro-markets offering lifestyle and connectivity advantages. The market is recalibrating—not weakening—after a strong multi-year run.”
West Pune (Baner, Hinjewadi, Bavdhan) remained the top-performing region, contributing 40% of city-wide sales. East Pune (Kharadi, Hadapsar) followed with 22%. Despite a 14% rise in unsold inventory, Pune’s Quarters to Sell (QTS) ratio stood at a healthy 3.7, underscoring robust market absorption.