Pune Office Stock Crosses 100 Mn Sq Ft, Demand Driven By Tech And Talent: Reports Knight Frank India
Pune Office Stock Crosses 100 Mn Sq Ft, Demand Driven By Tech And Talent: Reports Knight Frank India
Pune, August 6, 2025: Knight Frank India, in its landmark report A Billion Sq Ft and Counting – India Office Supply Growth Story, has highlighted Pune’s emergence as one of India’s most dynamic and cost-effective office markets. With a total office stock of 106 million square feet as of H1 2025, Pune contributes 11% to India’s commercial real estate landscape and has recorded an impressive CAGR of 8.9% since 2005.
Strategically located and supported by world-class educational institutions, Pune’s evolution from a traditional manufacturing base to a technology and innovation powerhouse has cemented its place in the country’s top-tier office markets. Pune’s growth rate is the second highest and more than the national average.
PBDs Dominate Pune’s Commercial Landscape
SBDs like Baner, Aundh, Kalyani Nagar, and Yerwada account for 38% of stock, offering a balance between accessibility and affordability. Meanwhile, CBDs, including traditional hubs like Camp, Bund Garden Road, and Deccan, contribute only 11% of total stock, reflecting the city’s decentralised, corridor-led growth pattern.
Modern, High-Quality Stock Powers Growth
Pune’s commercial stock reflects a strong inclination toward quality, with 50% of inventory classified as Grade A and the rest of the stock in other grades, the city boasts one of the most modern and efficient real estate footprints in the country. This healthy mix has allowed Pune to cater to a broad spectrum of occupiers from startups and SMEs to global technology giants and R&D centres.
The presence of tech majors and multinational GCCs in PBDs, supported by lower rentals and a robust talent pipeline, continues to drive sustained demand for high-quality office spaces.
Key Milestones in India’s Office Stock Evolution
| Period | Phase | Key Drivers | Stock Growth (mn sq ft) | % Change |
| 1990–2000 | Tech Boom Foundation | Economic liberalization, early IT services growth, emergence of tech parks, limited supply mainly in CBDs, rise of Indian software exports | Grew to 192 | – |
| 2000–2008 | IT/ITES Expansion Era | Offshoring boom, rise of IT/ITES occupiers, large integrated campuses, suburban corridor expansion (e.g., Whitefield, Hinjewadi, Cyberabad) | 192 → 278 (+86) | 45% |
| 2008–2010 | Great Recession Impact | Global financial crisis, demand contraction, rental corrections, consolidation of occupier footprints | 278 → 355 (+77) | 28% |
| 2010–2014 | Recovery & Consolidation | Demand recovery, infrastructure investments (metros, roads), growth of BFSI/consulting demand, entry of global funds | 355 → 544 (+188) | 53% |
| 2015–2019 | Policy Reforms Era | Launch of REIT framework, India’s first REIT (Embassy), implementation of RERA & GST, infra push, entry of coworking office players | 575 → 756 (+181) | 31% |
| 2020–2023 | COVID Era, Recovery and proliferation of flex space | Pandemic-led disruption, hybrid work adoption, resilience of REITs, rise in enterprise adoption of flex and managed offices, technology integration | 791 → 922 (+131) | 17% |
| 2024–Present | Rise of GCCs and AI | Rapid GCC expansion is accelerating demand for AI-integrated, tech-enabled workplaces. Flex space is becoming mainstream, ESG mandates are shaping asset choices, and design is increasingly centred on wellness, productivity, and innovation. | 973 → 993 (+20) | 2% |
Source: Knight Frank Research
P Vilas, National Director – Occupier Strategy & Solutions, Industrial & Logistics, Capital Markets, and Branch Head (Pune), Knight Frank India, said: “Pune has quietly emerged as a high-growth, innovation-focused office market with a unique blend of talent, affordability, and Grade A supply. The dominance of PBDs shows the city’s success in enabling corridor-based development models, particularly in IT and R&D. As global firms continue to adopt hybrid work formats, Pune’s flexibility and infrastructure edge make it one of the most attractive office markets for long-term commitments.”
As metro connectivity improves and road infrastructure expands across the Kharadi-Hinjawadi-Shivajinagar corridor, Pune is expected to see renewed investor interest and occupier expansion in its PBDs. These submarkets are already experiencing upward rental pressure, with newer Grade A assets commanding significant premiums.
The city’s ability to retain and attract young, digitally skilled talent while offering cost-effective, scalable workspaces ensures that it remains a focal point for tech, GCC, and manufacturing-linked office demand. With modern campuses, strong absorption trends, and institutional participation on the rise, Pune is set to play a central role in India’s journey to the next billion square feet of office supply.
Market Level Zone-wise Rentals (INR/sq ft)
Source: Knight Frank Research
