According to the India & Pune Office Real Estate Overview prepared by Cushman & Wakefield in November 2025, Pune had approximately 85.48 million sq. ft. of completed Grade A office stock as of 9M 2025, with around 73.65 million sq. ft. occupied.

The report also estimates approximately 25.6 million sq. ft. of new office supply between 2025 and 2027. With continued absorption expected, Pune remains one of India's important commercial office markets, although increasing supply could push vacancy higher in the near term.

For businesses looking to buy, lease or invest in commercial property in Pune, understanding the differences between micro-markets is becoming increasingly important.

Pune Commercial Real Estate Market: Key Numbers

Here are the most important numbers from the report:

• Grade A office stock: 85.48 million sq. ft.
• Occupied office stock: 73.65 million sq. ft.
• Overall vacancy: approximately 13.8%
• Average annual net absorption: approximately 3.8 million sq. ft.
• Expected supply, 2025–2027: approximately 25.7 million sq. ft.
• 9M 2025 market rent: approximately ₹93 per sq. ft. per month overall.

This makes Pune a market with both scale and choice. Companies can select from premium front-office locations, mixed-use business districts and relatively lower-cost peripheral business districts.

Why Is Pune's Office Market Growing?

Pune's commercial property market has evolved significantly from its traditional automobile and manufacturing base.

The city's office market has been transformed by the expansion of IT and IT-enabled services (IT/ITES). The development of Hinjewadi Phase 1 and the subsequent emergence of Baner as a multi-tenant IT destination played an important role in this transformation. Pune also has seven operational IT/ITES SEZs, according to the report.

The report identifies several major drivers of office demand:

1. Technology and IT/ITES
2. Automobile and engineering
3. BFSI
4. Professional services
5. Startups and emerging businesses
6. IT parks and SEZs
7. Infrastructure development
8. Availability of skilled talent

Pune's technology sector alone accounted for approximately 34% of office absorption between 2016 and 9M 2025. Engineering and manufacturing contributed about 16%, while BFSI contributed around 17%.

This diversified tenant base is important because Pune's office market is not dependent on a single industry.

Which Are the Best Commercial Real Estate Locations in Pune?

Pune's office market can broadly be divided into five major micro-markets:

• CBD: Central Business District
• SBD East: Kharadi, Viman Nagar, Yerwada, Kalyani Nagar, Mundhwa, Hadapsar and surrounding areas
• SBD West: Aundh, Baner, Pashan, Kothrud and surrounding areas
• PBD East: Phursungi, Wagholi, Charoli and other eastern peripheral locations
• PBD West: Hinjewadi, Wakad, Pimpri-Chinchwad, Tathawade and surrounding areas.

Each market serves a different business requirement.

1. Kharadi and East Pune: A Major Corporate Office Hub

Kharadi, Viman Nagar, Yerwada, Kalyani Nagar and Hadapsar form part of Pune's SBD East micro-market.

SBD East has emerged as a leading front-office market, attracting IT, BFSI, consulting and engineering companies. The report highlights improving infrastructure, accessibility to premium residential catchments and a large talent pool as important advantages.

As of 9M 2025:

• Grade A stock: approximately 46.4 million sq. ft.
• Occupied stock: approximately 41.4 million sq. ft.
• Vacancy: approximately 10.8%
• Future supply through 2027: approximately 15 million sq. ft.

The report puts SBD East's 9M 2025 market rent at approximately ₹101 per sq. ft. per month, making it one of Pune's premium office markets.

Who should consider Kharadi?

Kharadi is particularly relevant for:

• IT companies
• BFSI companies
• GCCs
• Large corporate offices
• Consulting firms
• Businesses requiring Grade A office buildings

The micro-market also has a substantial development pipeline, creating more options for companies planning future expansion.

2. Baner and Balewadi: A Strong West Pune Office Market

Baner, Balewadi and Wakad have become important commercial destinations because of their connectivity, residential catchment and proximity to Pune's western employment corridors.

The report classifies SBD West as a mixed office market, surrounded by residential developments that provide access to a large talent pool. It also notes that coworking operators prefer this location.

SBD West includes Aundh, Baner, Pashan and Kothrud, while Balewadi and Wakad are also part of the broader western commercial ecosystem identified in the report.

One interesting finding is rental appreciation.

SBD West locations including Baner, Balewadi and Wakad recorded rental appreciation of approximately 2.3% CAGR since 2019, according to the report.

Why businesses choose Baner and Balewadi

The western corridor offers:

• Strong residential catchment
• Access to skilled employees
• Proximity to Hinjewadi
• Mumbai-Pune connectivity
• Growing commercial developments
• Coworking and flexible office options
• Lifestyle and social infrastructure

For startups, technology companies, professional services firms and businesses looking for a balance between office accessibility and employee convenience, Baner-Balewadi remains an important option.

3. Hinjewadi and Wakad: Value-Oriented IT Locations

Hinjewadi and Wakad fall within Pune's PBD West micro-market.

This market includes Hinjewadi, Wakad, Pimpri-Chinchwad, Tathawade, Bavdhan, Talawade and other western peripheral locations.

The PBD West market had approximately:

• 18.22 million sq. ft. of completed Grade A stock
• 13.65 million sq. ft. occupied stock
• 24% vacancy
• Approximately 2.38 million sq. ft. of future supply through 2027
• Market rent of approximately ₹67 per sq. ft. per month as of 9M 2025.

This lower rental level compared with premium Pune micro-markets makes PBD West relevant for businesses that want larger office spaces at comparatively lower occupancy costs.

Recent transactions also demonstrate demand. The report records a 2025 lease of approximately 400,000 sq. ft. at International Tech Park Pune – Cypress in PBD West, at reported rents of ₹50–60 per sq. ft. per month.

4. Pune CBD: Premium Central Office Address

Pune's CBD includes locations such as:

Laxmi Road, Camp, Bund Garden, Boat Club, Koregaon Park, Dhole Patil Road, Pune Station, Shivaji Nagar, FC Road, JM Road, SB Road and surrounding areas.

The CBD is a traditional office market with limited Grade A supply but an established corporate ecosystem.

The report places Grade A CBD rentals at approximately ₹95–110 per sq. ft. per month as of 9M 2025. Vacancy was approximately 17%, partly reflecting additional supply.

CBD can therefore make sense for businesses that prioritize:

• Central accessibility
• Established business address
• Proximity to traditional commercial districts
• Client-facing offices
• Premium corporate positioning

What Is Driving Pune Office Demand in 2026?

The strongest demand driver remains technology.

Technology accounted for approximately 34% of Pune's office absorption between 2016 and 9M 2025, followed by other sectors at 22%, BFSI at 17%, and engineering and manufacturing at 16%.

But the market is becoming more diversified.

Pune is seeing demand from:

• IT and ITES
• BFSI
• Engineering and manufacturing
• Professional services
• Healthcare and pharmaceuticals
• Media and telecom
• E-commerce
• Flexible workspace operators

This diversification strengthens Pune's position as a long-term commercial real estate market.

Will Pune Office Rents Increase?

The report indicates that Pune's office rents have grown at approximately 3.1% CAGR since 2016, while individual micro-markets have experienced different rental trajectories.

Rental performance varies significantly by location.

For example:

• SBD East: approximately 0.8% CAGR since 2019
• SBD West: approximately 2.3% CAGR since 2019
• CBD: approximately 2.1% CAGR since 2019.

However, businesses should not assume that the quoted market rent is the final rent. Cushman & Wakefield notes that actual achievable rent can vary by approximately ±5%, depending on negotiations, lease structure and other factors.

Pune Commercial Real Estate Outlook for 2026–2027

The biggest story for Pune's office market is new supply.

The report estimates approximately 25.7 million sq. ft. of future supply between 2025 and 2027, including around 12.9 million sq. ft. in 2026 and 11.3 million sq. ft. in 2027.

The report expects Pune's vacancy to potentially rise to around 16.1% by 2027, primarily because of the significant amount of new supply entering the market.

For occupiers, this could create an important opportunity.

More supply can mean:

More choices → stronger negotiation power → better space specifications → greater flexibility in lease terms.

For landlords and investors, however, location, building quality, tenant profile and asset positioning will become increasingly important as businesses get more choices.

What Should Businesses Look for When Choosing an Office in Pune?

The cheapest rent does not necessarily mean the cheapest office.

Businesses should evaluate the total occupancy cost, including:

• Base rent
• CAM charges
• Parking
• Property taxes where applicable
• Fit-out costs
• Deposit
• Lock-in period
• Escalation
• Power and utilities
• Employee commute
• Expansion potential

A ₹70-per-sq.-ft. office with poor connectivity may ultimately cost more than a ₹90-per-sq.-ft. office located closer to employees and clients.

Therefore, the right Pune office location depends on the company's employee geography, business model, client requirements and growth plans, not simply the quoted rent.

Pune Commercial Real Estate: Final Takeaway

Pune's commercial real estate market is entering 2026 with a large and diversified office ecosystem.

The data shows that SBD East, including Kharadi and surrounding eastern locations, remains a major corporate office hub, while Baner, Balewadi and the wider SBD West corridor continue to benefit from residential catchment and talent availability. Hinjewadi and Wakad offer comparatively lower rental levels and large-format office opportunities, while Pune CBD continues to serve businesses seeking a central corporate address.

The key trend for 2026 is not simply rising demand. It is the combination of strong occupier demand, significant upcoming supply and increasingly differentiated micro-markets.

For companies looking for office space in Pune, the question is therefore no longer simply:

“What is the rent per sq. ft.?”

The better question is:

“Which Pune micro-market gives my business the right combination of rent, connectivity, talent access, building quality and long-term scalability?”

That is where location-level commercial real estate analysis becomes critical.

Frequently Asked Questions

Which is the best commercial real estate location in Pune?

There is no single best location for every business. Kharadi and SBD East are strong choices for corporate, IT and BFSI occupiers; Baner and Balewadi are attractive for businesses seeking access to residential catchments and talent; Hinjewadi and Wakad can offer comparatively lower office rents; and CBD suits businesses that prioritize a central corporate address.

What is the average office rent in Pune?

The report indicates an overall Grade A market rent of approximately ₹93 per sq. ft. per month as of 9M 2025. Actual rents vary substantially by micro-market, building quality, floor, specifications and lease terms.

Is Kharadi a good location for office space?

Yes. Kharadi is part of SBD East, Pune's major front-office market. The area benefits from Grade A office supply, IT and BFSI demand, improving infrastructure and access to a large talent pool.

Is Baner good for commercial office space?

Baner is part of Pune's western office corridor and has benefited from residential development, talent availability and connectivity. The broader SBD West market, which includes Baner and Aundh, recorded approximately 2.3% rental CAGR since 2019.

Is Hinjewadi cheaper than Kharadi for office space?

Based on the report's 9M 2025 micro-market figures, PBD West, which includes Hinjewadi and Wakad, had a market rent of approximately ₹67 per sq. ft. per month, compared with approximately ₹101 per sq. ft. per month for SBD East, which includes Kharadi. Actual rents vary by building and transaction terms.

What is the outlook for Pune office real estate?

Pune is expected to receive approximately 25.7 million sq. ft. of additional office supply between 2025 and 2027. Continued absorption is expected, but the report forecasts vacancy could increase to approximately 16.1% by 2027 because of the substantial new supply pipeline.

Source: Cushman & Wakefield, India & Pune Office Real Estate Overview, November 2025, prepared for Mindspace Business Parks REIT.