{"id":21608,"date":"2025-08-11T20:15:39","date_gmt":"2025-08-11T14:45:39","guid":{"rendered":"https:\/\/timesofpowerandvoice.com\/?p=21608"},"modified":"2025-08-11T20:15:46","modified_gmt":"2025-08-11T14:45:46","slug":"pune-office-stock-crosses-100-mn-sq-ft-demand-driven-by-tech-and-talent-knight-frank-india","status":"publish","type":"post","link":"https:\/\/timesofpowerandvoice.com\/?p=21608","title":{"rendered":"Pune Office Stock Crosses 100 Mn Sq Ft, Demand Driven by Tech and Talent: Knight Frank India"},"content":{"rendered":"\n

Pune: Knight Frank India,<\/strong>\u00a0in its landmark report\u00a0A Billion Sq Ft and Counting \u2013 India Office Supply Growth Story,\u00a0<\/em><\/strong>has highlighted\u00a0Pune\u2019s emergence as one of India\u2019s most dynamic and cost-effective office markets.<\/strong>\u00a0With a total office stock of 106 million square feet as of H1 2025, Pune contributes 11% to India\u2019s commercial real estate landscape and has recorded an impressive\u00a0CAGR of 8.9% since 2005.<\/strong><\/p>\n\n\n\n

Strategically located and supported by world-class educational institutions, Pune\u2019s evolution from a traditional manufacturing base to a technology and innovation powerhouse<\/strong> has cemented its place in the country\u2019s top-tier office markets. Pune\u2019s growth rate is the second highest and more than the national average.<\/p>\n\n\n\n

PBDs Dominate Pune\u2019s Commercial Landscape<\/strong><\/p>\n\n\n\n

Pune stands out for its strong peripheral orientation, with 51% of its office stock concentrated in Peripheral Business Districts (PBDs)<\/strong> such as Hinjewadi and Kharadi.<\/strong> These locations have emerged as major business corridors, thanks to proactive infrastructure investments and occupier preference for scalable, high-specification campuses.<\/a><\/p>\n\n\n\n

SBDs<\/strong> like Baner, Aundh, Kalyani Nagar, and Yerwada account for 38%<\/strong> of stock, offering a balance between accessibility and affordability. Meanwhile, CBDs,<\/strong> including traditional hubs like Camp, Bund Garden Road, and Deccan, contribute only 11%<\/strong> of total stock, reflecting the city’s decentralised, corridor-led growth pattern.<\/p>\n\n\n\n

Modern, High-Quality Stock Powers Growth<\/strong><\/p>\n\n\n\n

Pune\u2019s commercial stock reflects a strong inclination toward quality, with 50% of inventory classified as Grade A<\/strong> 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.<\/p>\n\n\n\n

The presence of tech majors and multinational GCCs in PBDs, supported by lower rentals and a robust talent pipeline,<\/strong> continues to drive sustained demand for high-quality office spaces.<\/p>\n\n\n\n

Key Milestones in India\u2019s Office Stock Evolution<\/strong><\/p>\n\n\n\n

Period<\/strong><\/strong><\/td>Phase<\/strong><\/strong><\/td>Key Drivers<\/strong><\/strong><\/td>Stock Growth (mn sq ft)<\/strong><\/strong><\/td>% Change<\/strong><\/strong><\/td><\/tr>
1990\u20132000<\/td>Tech Boom Foundation<\/td>Economic liberalization, early IT services growth, emergence of tech parks, limited supply mainly in CBDs, rise of Indian software exports<\/td>Grew to 192<\/td>\u2013<\/td><\/tr>
2000\u20132008<\/td>IT\/ITES Expansion Era<\/td>Offshoring boom, rise of IT\/ITES occupiers, large integrated campuses, suburban corridor expansion (e.g., Whitefield, Hinjewadi, Cyberabad)<\/td>192 \u2192 278 (+86)<\/td>45%<\/td><\/tr>
2008\u20132010<\/td>Great Recession Impact<\/td>Global financial crisis, demand contraction, rental corrections, consolidation of occupier footprints<\/td>278 \u2192 355 (+77)<\/td>28%<\/td><\/tr>
2010\u20132014<\/td>Recovery & Consolidation<\/td>Demand recovery, infrastructure investments (metros, roads), growth of BFSI\/consulting demand, entry of global funds<\/td>355 \u2192 544 (+188)<\/td>53%<\/td><\/tr>
2015\u20132019<\/td>Policy Reforms Era<\/td>Launch of REIT framework, India\u2019s first REIT (Embassy), implementation of RERA & GST, infra push, entry of coworking office players<\/td>575 \u2192 756 (+181)<\/td>31%<\/td><\/tr>
2020\u20132023<\/td>COVID Era, Recovery and proliferation of flex space<\/td>Pandemic-led disruption, hybrid work adoption, resilience of REITs, rise in enterprise adoption of flex and managed offices, technology integration<\/td>791 \u2192 922 (+131)<\/td>17%<\/td><\/tr>
2024\u2013Present<\/td>Rise of GCCs and AI<\/td>Rapid GCC expansion is accelerating demand for AI-integrated, tech-enabled workplaces. Flex space is becoming mainstream, ESG mandates are shaping asset choices, and design is increasingly centred on wellness, productivity, and innovation.<\/td>973 \u2192 993 (+20)<\/td>2%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Source: <\/em><\/strong>Knight Frank Research<\/em><\/em><\/strong><\/p>\n\n\n\n

P Vilas, National Director – Occupier Strategy & Solutions, Industrial & Logistics, Capital Markets, and Branch Head (Pune), Knight Frank India, said: <\/strong>\u201cPune 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\u2019s success in enabling corridor-based development models, particularly in IT and R&D. As global firms continue to adopt hybrid work formats, Pune\u2019s flexibility and infrastructure edge make it one of the most attractive office markets for long-term commitments.\u201d<\/em><\/p>\n\n\n\n

As metro connectivity improves and road infrastructure expands across the Kharadi-Hinjewadi-Shivajinagar corridor<\/strong>, Pune is expected to see renewed investor interest<\/strong> and occupier expansion in its PBDs. These submarkets are already experiencing upward rental pressure, with newer Grade A assets commanding significant premiums.<\/p>\n\n\n\n

The city\u2019s ability to retain and attract young, digitally skilled talent<\/strong> while offering cost-effective, scalable workspaces ensures that it remains a focal point for tech, GCC, and manufacturing-linked office demand.<\/strong> With modern campuses, strong absorption trends, and institutional participation on the rise, Pune is set to play a central role in India\u2019s journey to the next billion square feet of office supply.<\/p>\n\n\n\n

Market Level Zone-wise Rentals (INR\/sq ft)<\/strong><\/a><\/p>\n\n\n\n

 <\/strong><\/a><\/strong><\/td><\/td>Ahmedabad<\/strong><\/strong><\/td><\/td>Bengaluru<\/strong><\/strong><\/td><\/td>Chennai<\/strong><\/strong><\/td><\/td>Hyderabad<\/strong><\/strong><\/td><\/td>Kolkata<\/strong><\/strong><\/td><\/td>MMR<\/strong><\/strong><\/td><\/td>NCR- Delhi<\/strong><\/strong><\/td><\/td>NCR- Gurugram<\/strong><\/strong><\/td><\/td>NCR- Noida<\/strong><\/strong><\/td><\/td>Pune<\/strong><\/strong><\/td><\/td><\/tr>
CBD<\/strong><\/td><\/td>40-51<\/td><\/td>130-220<\/td><\/td>70-95<\/td><\/td>55-65<\/td><\/td>70-105<\/td><\/td>190-277<\/td><\/td>220-390<\/td><\/td>120-192<\/td><\/td>80-110<\/td><\/td>82-143<\/td><\/td><\/tr>
SBD<\/strong><\/td><\/td>47-55<\/td><\/td>100-180<\/td><\/td>75-105<\/td><\/td>70-95<\/td><\/td>55-95<\/td><\/td>98-427<\/td><\/td>90-230<\/td><\/td>85-140<\/td><\/td>50–65<\/td><\/td>64-128<\/td><\/td><\/tr>
PBD<\/strong><\/td><\/td>55-60<\/td><\/td>60-95<\/td><\/td>38-70<\/td><\/td>30-65<\/td><\/td>27-65<\/td><\/td>54-99<\/td><\/td>NA<\/td><\/td>40-45<\/td><\/td>30-35<\/td><\/td>48-110<\/td><\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"

Pune: Knight Frank India,\u00a0in its landmark report\u00a0A Billion Sq Ft and Counting \u2013 India Office Supply Growth Story,\u00a0has highlighted\u00a0Pune\u2019s emergence as one of India\u2019s most dynamic and cost-effective office markets.\u00a0With a total office stock of 106 million square feet as of H1 2025, Pune contributes 11% to India\u2019s commercial real estate landscape and has recorded […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[71,44,172],"tags":[],"class_list":["post-21608","post","type-post","status-publish","format-standard","hentry","category-business","category-pune","category-real-estate"],"_links":{"self":[{"href":"https:\/\/timesofpowerandvoice.com\/index.php?rest_route=\/wp\/v2\/posts\/21608","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/timesofpowerandvoice.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/timesofpowerandvoice.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/timesofpowerandvoice.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/timesofpowerandvoice.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21608"}],"version-history":[{"count":1,"href":"https:\/\/timesofpowerandvoice.com\/index.php?rest_route=\/wp\/v2\/posts\/21608\/revisions"}],"predecessor-version":[{"id":21609,"href":"https:\/\/timesofpowerandvoice.com\/index.php?rest_route=\/wp\/v2\/posts\/21608\/revisions\/21609"}],"wp:attachment":[{"href":"https:\/\/timesofpowerandvoice.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21608"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/timesofpowerandvoice.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21608"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/timesofpowerandvoice.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21608"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}