Office leasing in Pune grew 54% to 3.22 msf in Q2 2026, with GCCs accounting for 52%. At the same time, a record 13,756 new units were launched in the residential market, which is the highest in the last three years.
Record boom in Pune’s office market
New Delhi [भारत]July 17 (ANI): Pune reported strong gross leasing of 3.22 million square feet (MSF) in Q2 2026, up 54 per cent quarter-on-quarter (QoQ) and 13 per cent year-on-year (YoY). The contribution of Global Capability Centers (GCCs) in the total gross leasing of the city was about 52 percent i.e. 1.66 million square feet.
According to a report by Cushman & Wakefield, flexible workspace operators emerged as the largest occupier category during this period, capturing 45 percent share in total leasing activity. Continued occupier confidence in the Grade A office market pushed total leasing to 5.31 msf in H1 2026. Grade A office spaces are premium commercial properties with top-tier infrastructure, modern amenities and prime location.
Dominance of SBD East and PBD West
The report said that the city’s office demand remained mainly concentrated in a particular geographical area. The SBD East corridor remained the most preferred location for office space, accounting for about 56 per cent of the quarterly leasing activity. This was followed by PBD West with 33 percent share. These two office corridors together contributed about 90 percent of the total leasing.
Vacancy remains stable despite new supply
Net absorption during the quarter increased sharply to 2.51 MSF, taking H1 net absorption to 3.55 MSF. The report highlighted that despite the addition of over 3 MSF of new Grade A office space, vacancy remained stable at 13.2 per cent, an improvement of 51 basis points year-on-year, reflecting the market’s ability to absorb new supply. Office rents continued their upward trend with stock-weighted average rents increasing 2.7 percent year-on-year.
Strong growth of office sector across the country
On a larger scale, the report said gross leasing of the office sector across India reached about 43 MSF, the highest ever H1 leasing. GCCs acted as the main growth engine across the country, leasing approximately 16.5 MSF during H1-2026 and contributing 38 per cent to the total leasing activity.
Record rise in residential market also
Parallel to the office sector, Pune’s residential market also witnessed a record quarter with 13,756 new unit launches in Q2 2026, the highest quarterly supply recorded in the last three years. New launches increased by 21 percent quarter-on-quarter and 27 percent year-on-year. NH4 Bypass (North) corridor emerged as the most active residential market, contributing 41 per cent to the total launches, led by Hinjewady and Tathawade. This was followed by North-East Corridor with 28 percent share.
The report detailed that new supply continued to be dominated by homes in the mid- and high-end segments, which together accounted for about 78 percent of quarterly launches. The mid-segment contributed 41 percent of the new launches, while the high-end segment accounted for 37 percent. Residential capital values increased by 5.4 per cent quarter-on-quarter and 1.5 per cent year-on-year.
Pune’s retail market also vibrant
Pune’s retail market recorded leasing activity of 0.25 MSF in Q2, up 38 per cent quarter-on-quarter and 8 per cent year-on-year. Mall leasing accounted for 0.16 msf, led by fashion brands with 42 per cent share, while Main Street leasing stood at 0.09 msf. (ANI)
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