Pune Office Market Outlook in 2025

Pune, one of India’s fastest-growing urban centres, continues to strengthen its position as a leading business hub for IT, R&D, automotive, and global capability centres (GCCs). As the city matures into a prominent corporate destination, the demand for office space in Pune is evolving in both scale and sophistication.

With over 72 million sq. ft. of operational office stock and another 6+ million sq. ft. expected to enter the market in the next 12–18 months, Pune’s commercial real estate sector is gearing up for significant expansion. Businesses looking to lease or invest in commercial property in Pune in 2025 will find ample opportunities—if they know where to look and when to act.

Let’s explore the emerging trends that are set to shape Pune’s office market landscape in 2025.

1. Strong Leasing Momentum from GCCs and IT Occupiers

Pune remains a magnet for global capability centres and IT service providers, thanks to its skilled workforce, competitive rentals, and proximity to Mumbai. In 2024 alone, the city recorded nearly 5.4 million sq. ft. of office space absorption—a trend projected to grow by 8–10% in 2025.

Tech parks in Hinjewadi, Kharadi, and Baner-Balewadi are seeing an uptick in large-scale leasing. Companies are increasingly opting for consolidated, innovation-friendly campuses, with average deal sizes rising from 35,000 sq. ft. to 50,000+ sq. ft. per transaction. This demonstrates a clear shift toward long-term commitments and infrastructure-driven expansion in Pune’s office space market.

2. Surge in Flex Spaces Driven by Hybrid Work Culture

The growing popularity of hybrid work models is reshaping demand dynamics for flexible office space in Pune. Startups and mid-sized companies, in particular, are turning to managed office solutions that offer agility, short-term leases, and plug-and-play environments.

In 2024, flex spaces accounted for 18% of total office leasing in Pune, and this share is expected to reach 25% by the end of 2025. Key flex operators like WeWork, Awfis, Smartworks, and The Office Pass are expanding aggressively in areas such as Magarpatta, Kalyani Nagar, and Viman Nagar, tapping into the need for cost-effective, collaborative spaces.

3. Grade A Office Supply Set for a Major Boost

Developers are ramping up the construction of Grade A office space in Pune to meet the rising demand from corporate occupiers. Over 6.2 million sq. ft. of premium supply is anticipated to be delivered in 2025, largely concentrated in established business corridors like Kharadi, Baner, and Hinjewadi Phase 2 & 3.

A notable feature of this upcoming inventory is that over 70% is already in the advanced stages of pre-commitment or negotiation, reflecting occupier confidence. Developers like Panchshil Realty, Prestige Group, and Godrej Properties are introducing ESG-compliant campuses with LEED and WELL certifications, catering to sustainability-focused firms.

4. Rentals Stabilise with Upward Trend in Premium Zones

Pune’s commercial real estate rentals have largely held steady across 2024, with selective appreciation in high-demand zones. Average monthly rentals in hubs like Kharadi and Hinjewadi range between ₹65–₹90 per sq. ft., while premium micro-markets like Kalyani Nagar and Bund Garden Road are seeing prices climb to ₹100–₹110 per sq. ft. due to limited availability and robust tenant interest.

With leasing volumes set to rise and supply tightening in prime corridors, rental values may increase by 4–6% in 2025, particularly in Grade A business parks. Early engagement is recommended to secure favourable terms before prices escalate further.

5. Peripheral Zones Gaining Popularity Among Occupiers

As core markets approach saturation, businesses are exploring peripheral commercial hubs in Pune for their cost-efficiency and scalability. Areas like Baner, Balewadi, Wagholi, and Sus Road are quickly becoming attractive options due to better infrastructure and lower lease rates.

The Baner-Balewadi corridor, in particular, has seen a 30% year-on-year rise in leasing activity, backed by its proximity to residential areas and upcoming metro lines. These alternative hubs are expected to gain further traction in 2025 as new IT parks and business centres become operational.

6. Infrastructure Growth Driving Long-Term Value

Infrastructure upgrades are playing a pivotal role in shaping Pune’s office property market. The Pune Metro Phase 1, connecting key points like PCMC, Swargate, Vanaz, and Ramwadi, is on track to be fully operational by mid-2025, significantly improving accessibility to major business districts.

In addition, projects like the Pune Ring Road and the Purandar Greenfield Airport are expected to open up new growth corridors and unlock investment potential in previously underutilised zones. These infrastructure projects will directly benefit occupiers by improving commute times, employee access, and last-mile logistics.

Conclusion: Pune’s Office Market on a Growth Trajectory

Pune’s office space sector is entering a high-growth phase supported by strong fundamentals—rising corporate demand, infrastructural improvements, and a healthy supply pipeline. Whether you’re a tech giant, an emerging startup, or a multinational looking to expand, Pune offers future-ready commercial office spaces in well-connected and scalable environments.

With premium inventory getting absorbed quickly and flexible workspaces growing in popularity, now is the ideal time to plan your move.

At The Office Address, we help businesses find the right office space in Pune—from Grade A campuses in Kharadi to coworking hubs in Magarpatta, or cost-efficient options in Baner. Connect with us to explore tailored workspace solutions that match your business goals.