Office leasing in Pune records 3.0 mn. sq. ft. in Apr – Jun’25

Pune, 4th July 2025: CBRE South Asia Pvt. Ltd, India’s leading real estate consulting firm, today announced the findings of its report, ‘CBRE India Office Figures Q2 2025’.  As per the report, Pune recorded office space leasing of 3.0 mn. sq. ft. during the Apr-Jun’25 quarter. Notably, the city witnessed its highest-ever quarterly supply, with 6.2 mn. sq. ft. of new office space added in Q2 2025.

In Apr-Jun’25, key sectors that drove absorption included BFSI (44%), flexible space operators (27%), and technology (11%).

Key transactions recorded during Apr-Jun’25 in the city were:

• A large BFSI firm leased 771,200 sq. ft. in Panchshil Business Hub
• ArcelorMittal leased 104,500 sq. ft. in BR3-Avance (Tower A) (NSPL)
• TSYS International leased 88,200 sq. ft. in Mutha Towers

The report highlighted that Pune office space take-up was driven by small-sized (less than 50,000 sq. ft.) deals during Apr- Jun’25.

GCC leasing activity in Pune reached 1.5 mn. sq. ft. in the April–June 2025 quarter.

On a pan-India basis, the office sector recorded the highest-ever half-yearly leasing as well as supply in the first half of CY 2025. Leasing activity touched 39 mn. sq. ft., a 3% YOY growth. New office supply surged to highest ever level at 27.7 mn. sq. ft., 19% YoY increase during Jan-Jun’25.

Bengaluru led India’s office space absorption in the first half of CY 2025, capturing a 27% share, equivalent to 10.5 mn. sq. ft. Mumbai and Delhi-NCR followed, accounting for 17% (6.6 mn. sq. ft.) and 16% (6.1 mn. sq. ft.) respectively. Collectively, these three major markets drove approximately 60% of the total office space leasing between Jan-Jun’25.

Technology firms were the primary drivers of office leasing during Jan-Jun’25, securing 9.6 mn. sq. ft, with a 25% share in the total leasing. BFSI and Flexible space operators followed, accounting for 23% and 17% respectively. Cumulatively, Technology, BFSI and flexible space operators led the leasing with a cumulative share of 64% during Jan-Jun’25.

During Jan-Jun’25, global corporates (including US, EMEA, & APAC) led the absorption with 53% whereas domestic firms recorded 47% of absorption during the same period. US corporates (led by financial services and investment firms) constituted for a share of 47% of the total leasing by the BFSI sector during Jan-Jun’25. Leasing by engineering & manufacturing sector was primarily driven by US, and EMEA firms with a combined share of over 66%.

About 15.2 mn. sq. ft space was leased by GCCs during Jan-Jun’25, accounting for ~ 40% share in overall leasing. Bengaluru recorded 5.2 mn. sq. ft. GCC leasing, followed by Chennai at 2.7 mn. sq. ft. and Delhi-NCR at 2.6 mn. sq. ft. during this period.

On a quarterly basis, office sector leasing in Apr-Jun’25 increased by over 8% Y-o-Y, recording 20.3 mn. sq. ft. This period also saw a surge in new completions with 17.1 mn. sq. ft. of incoming supply, a 27% Y-o-Y increase.

In terms of absorption, Bengaluru led the office activity with 5.1 mn. sq. ft. followed by Mumbai with 3.7 mn. sq. ft, Chennai and Pune recorded 3 mn. sq. ft each. Supply additions in Pune, Bengaluru, and Hyderabad accounted for a 73% share.

The report further highlights that technology companies held the highest share in office leasing during Apr-Jun’25 with a 26% share, followed by BFSI firms with 21% share, flexible space operators 19% share, research, consulting & analytics (RCA) companies with 8% share during the same period. Engineering & manufacturing (E&M) and aviation sectors accounted for 5% share each, and life sciences accounted for 3% share.

For the Apr – Jun’25 period, leasing by GCCs was recorded at 7.3 mn. sq. ft., accounting for a 36% share in overall leasing. Bengaluru led the GCC leasing during the quarter with a 27% share, followed by Chennai at 21%, Pune at 20% and Hyderabad at 15%. Delhi-NCR and Mumbai had a 12% and 4% share in leasing respectively.

Office leasing in green-certified assets accounted for 77% of total office leasing during the quarter, (15.6 mn. sq. ft.) while 93% of new supply (16.0 mn. sq. ft.) in Apr-Jun’25 was green certified. This underscores the increasing commitment of both occupiers and developers to environmental, social, and governance (ESG) principles and sustainability initiatives. Bengaluru led with a 29% in leasing in green-certified assets, followed by Chennai at 16% and Hyderabad at 14% share in overall leasing.

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “The first half of 2025 has been a record period for office leasing in India, pointing to a resilient and dynamic growth curve. We are witnessing not just an uptick in numbers, but a profound transformation driven by strong demand and strategic portfolio expansions from both domestic and global enterprises. All metro cities have collectively contributed to this record leasing, solidifying their status as attractive economic hubs. This sustained momentum, coupled with significant capital inflows into high-quality, institution-grade developments, underscores the unwavering global confidence in India’s long-term growth story.”

Ram Chandnani, Managing Director, Leasing, CBRE India, said, “It’s clear that the office market’s vibrancy is rooted in specific sectoral strengths and a fundamental shift in occupier priorities. Technology firms, particularly those at the forefront of AI, ML, and cloud computing, remain core drivers of demand for office space, complemented by growth from the BFSI and Engineering & Manufacturing sectors. Occupiers are now increasingly prioritizing employee experience, seeking out premium, LEED-certified spaces that champion well-being, flexibility, and collaboration. The GCC expansion showcases India as a growing market going beyond metro cities now.”