1 day Ago By Shashank Didmishe
Pune: A rise in hiring of IT professionals by overseas tech companies and demand for flexible office seats have led to an increase in transactions in commercial real estate segment in the city. During the first three months of 2025, the city saw office leasing to the tune of 37 lakh sq ft compared to 19 lakh sq ft in the same period last year. This is a 91% increase in number of transactions, Knight Frank India data showed.
The demand is mainly driven by captive technology centres of foreign companies, otherwise known as global capability centres (GCCs). The area of commercial real estate leased in Pune driven by GCCs was at 11 lakh sq ft in January-March compared to 3 lakh sqft during the same period last year. Despite the rising share of GCCs, flexible spaces occupy 43% of commercially leased real estate in Pune at 16 lakh sq ft.
Despite the growth, Pune's commercial real estate is third among major metros, closely lagging Hyderabad at 40 lakh sq ft but is far behind Bengaluru, which saw transactions to the tune of 127 lakh sq ft. The growth in Pune can also be attributed to an increase in requirement for flexible office spaces , which has become a lucrative way to cut costs. The number of offices leasing flexible seating in Pune increased by 70% in 2024 to 39,000 seats compared to 23,000 in the previous year, as per data from consultancy firm Cushman & Wakefield.
Key hubs like Baner-Balewadi and the city centre account for 75% of the city's flexible space stock, while emerging locations such as Vimannagar and Kharadi are poised for further expansion. "Pune has emerged as a key commercial office market driven by sectors such as IT, finance, manufacturing, automobiles, and pharmaceuticals. The city is also witnessing increased traction from GCCs looking to be closer to their talent pool, supported by a strong supply of high-quality office spaces," Amit Ramani, MD of Awfis Space Solutions, said.
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