Pune: Pune’s office market is on track to set a new leasing benchmark in 2025, having recorded its highest-ever gross leasing volume (GLV) for a half-year period at 6.8 million square feet (msf), in H1 2025 (Jan-June), a 67% year-on-year increase and a 54% rise over H2 2024, according to Cushman & Wakefield’s latest Q2 Office MarketBeat Report. GLV factors in all leasing activity in the market, including fresh take-up, renewal of contracted terms by corporates as well as pre-leasing, and is an indication of overall market activity. The city contributed 16% (6.8 msf) to the pan-India GLV of 42 msf in H1 2025, ranking among the top 4 markets alongside Bengaluru (9.9 msf), Mumbai (8.2 msf) and Delhi NCR ( 7.4 MSF).
In 2025, Pune’s GLV is projected to surpass 10 msf, setting a new historic high year, and reinforcing the city’s growing stature in India’s commercial real estate landscape.
| 2021 | 2022 | 2023 | 2024 | 2025 | ||||
| H1 | H2 | H1 | H2 | H1 | H2 | H1 | H2 | H1 |
| 1.9 | 2.9 | 4.0 | 2.7 | 6.2 | 3.5 | 4.1 | 4.4 | 6.8 |
Source: Cushman & Wakefield
This strong momentum was driven by robust demand from sectors such as Engineering & Manufacturing, IT-BPM and Flexible workspaces, which together, accounted for ~4.6 msf (close to 70% share) in H1 2025. A total of ~2.7 msf of GCC transactions recorded in H1 2025, of which BFSI, Engineering and Manufacturing and IT-BPM were the top contributors to the GCC with a share of 36%, 51% and 10% respectively.
Flexible Workspaces also continued their upward trajectory, further cementing Pune’s position as the second-largest flex market after Bengaluru. Over the past three years, Flexible Workspaces in Pune have maintained an average annual footprint of 1.56 msf, accounting for around 19% of the city’s overall GLV.
Supply Pipeline continues to remain strong
On the supply side, Pune saw a healthy infusion of new office space in the second quarter, with nearly 8 MSF of new supply added in H1 2025, comprising primarily 90% Grade A and A+ office space. This increase in supply has resulted in a marginal rise in vacancy levels to 12–13%, a shift that is being viewed positively by market participants. After several years of vacancy rates staying below 10%, this evolution toward a more balanced market environment is facilitating swifter deal closures and offering greater options to occupiers seeking large contiguous spaces.
By the end of 2025, with continued quality additions to stock, vacancy is projected to rise to 15–16%, making it a more balanced market. The city is expected to cross 15 MSF in new office supply by year-end, marking a historic high for the Pune office market.
Commenting on the performance, Moinuddin Patel, Managing Director- Pune, Cushman & Wakefield said: “Pune’s office market is poised to achieve a historic milestone in 2025, with gross leasing volumes projected to exceed 10 million square feet for the first time. This anticipated record is underpinned by sustained demand across key sectors. The continued momentum in the flexible workspace segment, the resilience demonstrated by engineering and manufacturing occupiers, and the steady expansion of Global Capability Centres (GCCs) collectively underscore Pune’s growing strategic importance within India’s commercial real estate landscape. Supported by a healthy pipeline of high-quality supply and a more balanced, occupier-friendly environment, the city is well-positioned to cater to the evolving space requirements of both domestic and global enterprises.”
