By City contributes 11% to India’s total office stock
Pune, August 04, 2025: Knight Frank India, in its landmark report A Billion Sq Ft and Counting – India Office Supply Growth Story, has highlighted Pune’s emergence as one of India’s most dynamic and cost-effective office markets.With a total office stock of 106 million square feet as of H1 2025, Pune contributes 11% to India’s commercial real estate landscape and has recorded an impressive CAGR of 8.9% since 2005.
Strategically located and supported by world-class educational institutions, Pune’s evolution from a traditional manufacturing base to a technology and innovation powerhouse has cemented its place in the country’s top-tier office markets.Pune’s growth rate is the second highest and more than the national average.
PBDs Dominate Pune’s Commercial Landscape
Pune stands out for its strong peripheral orientation, with 51% of its office stock concentrated in Peripheral Business Districts (PBDs) such as Hinjewadi and Kharadi. These locations have emerged as major business corridors, thanks to proactive infrastructure investments and occupier preference for scalable, high-specification campuses.
SBDs like Baner, Aundh, Kalyani Nagar, and Yerwadaaccount for 38% of stock, offering a balance between accessibility and affordability. Meanwhile, CBDs, including traditional hubs like Camp, Bund Garden Road, and Deccan, contribute only 11% of total stock, reflecting the city’s decentralised, corridor-led growth pattern.
Modern, High-Quality Stock Powers Growth
Pune’s commercial stock reflects a strong inclination toward quality, with 50% of inventory classified as Grade A and the rest of the stock in other grades, the city boasts one of the most modern and efficient real estate footprints in the country. This healthy mix has allowed Pune to cater to a broad spectrum of occupiers from startups and SMEs to global technology giants and R&D centres.
The presence of tech majors and multinational GCCs in PBDs, supported by lower rentals and a robust talent pipeline, continues to drive sustained demand for high-quality office spaces.
P Vilas, National Director – Occupier Strategy & Solutions, Industrial & Logistics, Capital Markets, and Branch Head (Pune), Knight Frank India, said: “Pune has quietly emerged as a high-growth, innovation-focused office market with a unique blend of talent, affordability, and Grade A supply. The dominance of PBDs shows the city’s success in enabling corridor-based development models, particularly in IT and R&D. As global firms continue to adopt hybrid work formats, Pune’s flexibility and infrastructure edge make it one of the most attractive office markets for long-term commitments.”
As metro connectivity improves and road infrastructure expands across the Kharadi-Hinjewadi-Shivajinagar corridor, Pune is expected to see renewed investor interestand occupier expansion in its PBDs. These submarkets are already experiencing upward rental pressure, with newer Grade A assets commanding significant premiums.
The city’s ability to retain and attract young, digitally skilled talent while offering cost-effective, scalable workspaces ensures that it remains a focal point for tech, GCC, and manufacturing-linked office demand. With modern campuses, strong absorption trends, and institutional participation on the rise, Pune is set to play a central role in India’s journey to the next billion square feet of office supply.
About Knight Frank
Knight Frank LLP is a leading independent, global property consultancy. Headquartered in London, Knight Frank has 20,000+ people operating from over 600+ offices across more than 50 territories. The Group advises clients ranging from individual owners and buyers to major developers, investors, and corporate tenants. For further information about the Company, please visit www.knightfrank.com
Knight Frank India is headquartered in Mumbai and has more than 1,900 experts across Bangalore, Delhi, Pune, Hyderabad, Chennai, Kolkata and Ahmedabad. Backed by strong research and analytics, our experts offer a comprehensive range of real estate services across advisory, valuation and consulting, transactions (residential, commercial, retail, hospitality, land, and capitals), facilities management and project management. For more information, visit www.knightfrank.co.in
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