Pune Office Leasing Rises 18% to 8.8 mn sq ft in 9M CY2026, Highest Nine-Month Total Since 2018
Pune, 12th October 2026: Pune recorded 8.8 mn sq ft of office transactions during January-September 2026 (9M CY2026)[1], an 18% year-on-year (YoY) increase from 7.4 mn sq ft in the same period last year, according to Knight Frank India, the leading international property consultancy, stated in its latest assessment of the Indian office market. This was the highest leasing volume for the first nine months of any year since 2018. Pune accounted for 13% of office leasing across India’s eight major markets[2].
Pune Office Market Summary – 9M CY2026
| Indicator | 2026 | 2025 | YoY Change |
| Transactions, 9M (mn sq ft) | 8.8 | 7.4 | 18% |
| New completions, 9M (mn sq ft) | 6.0 | 9.9 | -39% |
| Average transacted rent, Q3 (INR/sq ft/month) | 83.0 | 78.0 | 6% |
| Vacancy, Q3 | 13.8% | 13.5% | 30 bps |
Source: Knight Frank Research. Rents are average transacted rents. Vacancy change shown in basis points
Leasing remained active through the year, with 3.1 mn sq ft transacted in Q1, 3.5 mn sq ft in Q2 and 2.2 mn sq ft in Q3.
New completions totalled 6.0 mn sq ft during 9M CY2026, following a record 14.2 mn sq ft delivered during full year 2025. Vacancy edged up to 13.8% in Q3 2026 from 13.5% a year earlier, an increase of 30 basis points.
| GCCs strengthen Pune’s occupier base |
GCC nearly doubled their leasing to 3.1 mn sq ft in 9M CY2026 from 1.6 mn sq ft a year earlier, making them Pune’s largest occupier group. They accounted for 35% of the city’s office transactions. Pune’s share of GCC leasing across India’s eight major markets rose to 11% from 6% in 9M CY2025.
Flex operators leased 2.5 mn sq ft during the period, accounting for 28% of Pune’s total office transactions. Their presence highlights the importance of flexible workspace options in the city’s occupier mix.
Transactions by End Use – 9M CY2026
| End user | Area Leased, 9M CY2026 (mn sq ft) | Share, 9M CY2026 | Share, 9M CY2025 |
| GCCs | 3.1 | 35% | 22% |
| Flex operators | 2.5 | 28% | 38% |
| Third-party IT services | 1.6 | 18% | 20% |
| India-facing businesses | 1.6 | 18% | 21% |
| Total | 8.8 | 100% | 100% |
Source: Knight Frank Research. Figures and shares may not add up due to rounding
| Rental growth reflects demand for quality space |
Average transacted rents rose 6% YoY to INR 83.0 per sq ft per month in Q3 2026. Grade A space accounted for 87% of office transactions during 9M CY2026.
- Vilas Menon, Executive Director, Occupier Strategy & Solutions, Industrial & Logistics and Capital Markets, Branch Head (Pune), Knight Frank India, said, “Pune’s office market continues to attract occupiers, with leasing reaching its highest nine-month level since 2018. GCCs are a key growth driver, while flex operators account for a significant share of activity. The market is absorbing new supply, even as vacancy has edged higher. Pune’s talent pool and cost competitiveness continue to strengthen its appeal to companies looking to establish or expand their capability centres in India.”
