In H1 2025, the leasing of offices in India has experienced a surge, with Pune recording the most significant growth. However, this bustling city has noticed a decline in leasing.
In the first half of 2025, Pune has emerged as a frontrunner in India's office space market, with a significant increase in net office absorption and new office completions. According to a report by ANAROCK Research & Advisory, Pune recorded a staggering 40% year-on-year increase in net office absorption, surging from 19.08 million sq ft in H1 2024 to approximately 26.8 million sq ft in H1 2025.
The strong leasing activity and demand growth in Pune are the primary factors driving this boom. The city experienced a remarkable 188% year-on-year growth in leasing volumes, with leasing volumes surging to 3.8 million sq ft from 1.32 million sq ft a year earlier. This surge is largely driven by expanding IT, R&D, automotive, and global capability centres (GCCs) establishing or enlarging their presence in Pune.
New office completions in Pune grew exceptionally by 533% year-on-year, rising from 0.9 million sq ft to over 5.7 million sq ft. This supply growth supports and matches the rising demand for quality office spaces.
Pune's strategic location and cost advantages also contribute to its attractiveness. The city's proximity to Mumbai, combined with operational cost advantages and a robust talent pool, make it an attractive destination for businesses, especially tech and IT firms.
Enterprises are leasing larger, consolidated spaces to accommodate innovation teams, with average deal sizes increasing substantially (from around 35,000 sq ft to nearly 50,000 sq ft per transaction). There is also a notable rise in demand for managed and coworking spaces among startups and mid-size enterprises, fueled by the adoption of hybrid work models which demand flexibility and plug-and-play office options.
Pune’s evolving commercial real estate market and improving infrastructure reinforce its position as a strategic hub, further fuelling office market growth. The tech sector maintains strong momentum, accounting for the largest share of leasing. Flexible workspace providers also significantly contribute to the market activity, reflecting changing occupier preferences.
In summary, the top factors driving Pune's office market boom in H1 2025 are the explosive growth in leasing demand primarily from IT and tech sectors, a huge increase in new office supply, strategic locational benefits, evolving workspace preferences toward flexible and larger consolidated spaces, and an overall maturing commercial real estate market. These factors have combined to make Pune a hotspot for office space leasing in India.
[1] ANAROCK Research & Advisory, Pune Office Market: H1 2025 Update, [accessed on 2025-07-01] [2] ANAROCK Research & Advisory, India Office Market: H1 2025 Update, [accessed on 2025-07-01] [3] ANAROCK Research & Advisory, Pune Real Estate Market: H1 2025 Update, [accessed on 2025-07-01] [4] ANAROCK Research & Advisory, Flexible Workspace Market in India: H1 2025 Update, [accessed on 2025-07-01]
In the booming office market of Pune, the tech and IT sectors are significantly investing, contributing to the 188% year-on-year growth in leasing volumes. The financial benefits, such as lower operational costs and a robust talent pool, make Pune an attractive destination for these businesses.
The evolving real-estate landscape in Pune, with a 533% year-on-year increase in new office completions, is mirroring the expanding demand for quality office spaces. This surge in supply supports the growth observed in the industry, catering to businesses' needs for innovation, larger consolidated spaces, and flexible coworking options.
