{"id":25026,"date":"2026-07-13T02:17:16","date_gmt":"2026-07-12T20:47:16","guid":{"rendered":"https:\/\/timesofpowerandvoice.com\/?p=25026"},"modified":"2026-07-13T02:17:16","modified_gmt":"2026-07-12T20:47:16","slug":"pune-records-highest-ever-half-year-office-leasing-in-h1-2026-residential-sales-remain-resilient-as-launches-rise-17-yoy-knight-frank-india","status":"publish","type":"post","link":"https:\/\/timesofpowerandvoice.com\/?p=25026","title":{"rendered":"Pune records highest-ever half-year office leasing in H1 2026; Residential sales remain resilient as launches rise 17% YoY: Knight Frank India"},"content":{"rendered":"

Pune:<\/strong>\u00a0Knight Frank India, in its latest report,\u00a0India Real Estate H1 2026<\/em>, highlighted Pune’s continued real estate momentum, with the city recording its\u00a0highest-ever half-year office leasing volume<\/strong>\u00a0while maintaining healthy residential demand during the first half of 2026.The office market witnessed gross leasing transactions of\u00a06.6 mn sq ft<\/strong>, registering a\u00a029% year-on-year (YoY)<\/strong>\u00a0increase despite a high base in the corresponding period last year. The growth was driven by strong occupier demand from\u00a0Global Capability Centres (GCCs), flex operators and third-party IT\/ITeS companies<\/strong>, supported by larger deal sizes and sustained demand for Grade A office developments.<\/p>\n

On the residential front, Pune continued to witness healthy end-user demand with\u00a024,890 housing units sold during H1 2026<\/strong>, a\u00a02% YoY<\/strong>\u00a0increase. Developers remained confident about the market outlook, launching\u00a031,116 new housing units<\/strong>, reflecting a\u00a017% YoY<\/strong>\u00a0growth. Residential prices also continued their upward trajectory, increasing\u00a05% YoY<\/strong>\u00a0to an average of\u00a0INR 10,063 per sq ft<\/strong>.<\/p>\n

Office Market Highlights 0f Pune<\/strong><\/p>\n

PUNE OFFICE MARKET SUMMARY<\/strong><\/p>\n\n\n\n\n\n\n
Parameter<\/strong><\/td>\nH1 2026<\/strong><\/p>\n

Mn sq ft<\/strong><\/td>\n

H1 2026<\/strong><\/p>\n

Change (YoY)<\/strong><\/td>\n<\/tr>\n

Completions in mn sq ft<\/td>\n3.9 mn sq ft<\/td>\n-55%<\/td>\n<\/tr>\n
Transactions in mn sq ft<\/td>\n6.6 mn sq ft<\/td>\n29%<\/td>\n<\/tr>\n
Average transacted rent in INR\/sq ft\/month<\/td>\nINR 81.7\/sq ft\/month<\/td>\n6%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Note: 1. 1 square metre (sq m) = 10.764 square feet (sq ft), Source: Knight Frank Research<\/p>\n

Pune’s office market recorded its\u00a0strongest half-year leasing performance on record<\/strong>\u00a0during H1 2026, underlining the city’s growing importance as one of India’s leading commercial office destinations. Gross office transactions stood at\u00a06.6 mn sq ft<\/strong>, driven by sustained occupier demand across multiple sectors despite elevated leasing levels in the previous year. The increase in leasing activity was supported by several large-format transactions from\u00a0Global Capability Centres (GCCs), flex operators and third-party IT\/ITeS firms<\/strong>. Campus-style office developments across\u00a0Kharadi, Hinjawadi and Baner<\/strong>\u00a0continued to attract occupiers seeking scalable Grade A office space.<\/p>\n

While office demand strengthened, new office completions moderated to\u00a03.9 mn sq ft<\/strong>, a decline of\u00a055% YoY<\/strong>\u00a0following record supply additions in the previous year. The moderation in fresh supply, coupled with sustained leasing activity, resulted in the city’s vacancy level declining by\u00a080 basis points to 14.1%<\/strong>, indicating improving market fundamentals.<\/p>\n

The occupier profile remained well diversified during H1 2026.\u00a0Flex operators emerged as the largest occupier segment, accounting for 33% of leasing activity<\/strong>, followed closely by\u00a0Global Capability Centres at 32%<\/strong>, up from 25% a year ago. GCC demand was led by occupiers across the\u00a0BFSI, manufacturing, engineering and technology sectors<\/strong>, signalling the continued expansion and diversification of Pune’s GCC ecosystem beyond its traditional IT base. Third-party IT\/ITeS companies contributed\u00a016%<\/strong>\u00a0of leasing activity, while India-facing businesses accounted for the remaining\u00a019%<\/strong>.<\/p>\n\n\n\n\n
End-User Licensee\/Buyer<\/strong><\/td>\nFlex<\/strong><\/td>\nIndia-Facing Business<\/strong><\/td>\nThird Party IT<\/strong><\/td>\nGCC<\/strong><\/td>\nTotal<\/strong><\/td>\n<\/tr>\n
Area transacted in mn sq ft<\/strong><\/td>\n2.19<\/td>\n1.24<\/td>\n1.0<\/td>\n2.1<\/td>\n6.6<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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

Leasing activity also became more geographically diversified across Pune’s business districts.\u00a0Peripheral Business District (PBD) West<\/strong>\u00a0emerged as the city’s largest office destination, accounting for\u00a033%<\/strong>\u00a0of transactions, more than doubling its share compared to H1 2025, supported by large contiguous office spaces in\u00a0Hinjawadi and Wakad<\/strong>.\u00a0PBD East<\/strong>\u00a0remained another key office hub, while\u00a0SBD East<\/strong>\u00a0increased its share to\u00a026%<\/strong>, reflecting growing occupier interest across multiple office corridors.<\/p>\n

Average office rentals increased\u00a06% YoY<\/strong>\u00a0to\u00a0INR 81.7 per sq ft per month<\/strong>, reflecting sustained occupier demand for quality office assets despite ongoing development activity across the city.<\/p>\n

Vilas P Menon, National Director – Occupier Services, Capital Markets & Branch Head \u2013 Pune, Knight Frank India said,\u00a0<\/em><\/strong>\u201cPune\u2019s office market continues to demonstrate remarkable resilience, recording its strongest half-year leasing performance to date. Robust demand from GCCs, flex operators and technology-led occupiers, coupled with improving infrastructure and expanding metro connectivity, reinforces the city\u2019s position as one of India\u2019s most preferred commercial destinations. As a healthy supply pipeline comes on stream, Pune remains well placed to sustain its long-term growth trajectory.\u201d<\/em><\/p>\n

Looking ahead, Pune’s office market is expected to benefit from continued infrastructure investments, including the phased rollout of\u00a0Metro Line 3 connecting Hinjewadi and Shivajinagar<\/strong>, planned metro expansion towards\u00a0Kharadi and Hadapsar<\/strong>, and a healthy office supply pipeline expected during the second half of the year. These developments, alongside continued GCC expansion, are expected to support demand across both established and emerging office districts.<\/p>\n

Residential Market Highlights of Pune<\/strong><\/p>\n

Pune’s residential market maintained healthy momentum during H1 2026, supported by sustained end-user demand and strong developer confidence. Housing sales increased by\u00a02% YoY<\/strong>\u00a0to\u00a024,890 units<\/strong>, while new launches rose at a faster pace by\u00a017% YoY<\/strong>\u00a0to\u00a031,116 units<\/strong>, with developers focusing on Pune’s western and eastern growth corridors where employment hubs and improving connectivity continue to drive demand.<\/p>\n

PUNE RESIDENTIAL MARKET SUMMARY<\/strong><\/p>\n\n\n\n\n\n\n
Parameter<\/strong><\/td>\nH1 2026<\/strong><\/td>\nH1 2026<\/strong><\/p>\n

Change% (YoY)<\/strong><\/td>\n<\/tr>\n

Launches (housing units)<\/td>\n31,116<\/td>\n17%<\/td>\n<\/tr>\n
Sales (housing units)<\/td>\n24,890<\/td>\n2%<\/td>\n<\/tr>\n
Average price in INR\/sq ft<\/td>\nINR 10,063\/sq ft<\/td>\n5%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Note: 1 square metre (sq m) = 10.764 square feet (sq ft), Source: Knight Frank Research<\/p>\n

Residential price appreciation remained broad-based across Pune’s key micro-markets, with the city’s average residential price increasing\u00a05% YoY<\/strong>\u00a0to\u00a0INR 10,063 per sq ft<\/strong>. Locations such as\u00a0Baner, Kharadi and Hinjewadi<\/strong>\u00a0continued to witness healthy buyer interest owing to their proximity to major employment centres, improving connectivity and projects offering larger homes and enhanced lifestyle amenities.<\/p>\n

The composition of housing demand continued to move towards higher-value homes during H1 2026. The share of homes priced\u00a0below INR 5 mn declined<\/strong>, while the\u00a0INR 5\u201310 mn<\/strong>\u00a0and\u00a0INR 10\u201320 mn<\/strong>\u00a0categories accounted for a larger share of overall sales. Demand for homes priced\u00a0above INR 20 mn<\/strong>\u00a0also remained steady, reflecting the continued preference among buyers for larger and premium residential developments.<\/p>\n

Pune ticket size split comparison of sales during H1 2025 and H1 2026<\/u><\/strong><\/p>\n

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

During H1 2026, Pune accounted for the highest YoY percentage growth in luxury housing across the leading eight metros in the country. The city witnessed a growth of 54% YoY in the INR 20-50 mn segment. The ticket size of below INR\u00a0 5mn saw a drop of -8%.<\/p>\n

TICKET-SIZE SPLIT OF SALES<\/strong><\/p>\n\n\n\n\n\n
Ticket Size Categories<\/strong><\/td>\n<5 mn<\/strong><\/td>\n5-10 mn<\/strong><\/td>\n10-20 mn<\/strong><\/td>\n20-50 mn<\/strong><\/td>\n50-100 mn<\/strong><\/td>\n100-200 mn<\/strong><\/td>\n200-500 mn<\/strong><\/p>\n

\u00a0<\/strong><\/td>\n

Total<\/strong><\/td>\n<\/tr>\n
H1 2024<\/strong><\/td>\n5,013<\/td>\n10,841<\/td>\n6,990<\/td>\n1,957<\/td>\n87<\/td>\n2<\/td>\n–<\/td>\n24,890<\/td>\n<\/tr>\n
YoY<\/strong><\/p>\n

% change<\/strong><\/td>\n

-25%<\/td>\n-5%<\/td>\n42%<\/td>\n54%<\/td>\n67%<\/td>\n-89%<\/td>\nNA<\/td>\n2%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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

Pune West remained the city’s largest residential market during the period, led by\u00a0Hinjewadi, Wakad, Baner and Mahalunge<\/strong>, while Pune East, anchored by\u00a0Kharadi, Wagholi and Hadapsar<\/strong>, continued to account for a significant share of residential activity. Together, these two corridors remained the primary centres of housing demand, supported by established employment hubs, expanding infrastructure and a steady pipeline of new residential developments.<\/p>\n

Launch activity also remained concentrated across Pune’s western and eastern growth corridors, with\u00a0Hinjewadi, Tathawade, Wakad and Kharadi<\/strong>\u00a0accounting for a significant share of new residential supply, highlighting continued developer preference for locations benefiting from employment-led demand and improving connectivity.<\/p>\n

While increased project launches led to unsold inventory rising\u00a019% YoY<\/strong>\u00a0to\u00a057,879 units<\/strong>, market absorption remained healthy. The city-wide\u00a0Quarters-to-Sell (QTS)<\/strong>\u00a0stood at\u00a04.5 quarters<\/strong>, indicating that the rise in inventory has largely been driven by higher launches rather than weakening demand. Among various ticket-size categories, the\u00a0INR 5\u201310 mn<\/strong>\u00a0segment continued to record the healthiest market conditions with a\u00a0QTS of 1.9 quarters<\/strong>.<\/p>\n

Vilas P Menon, National Director, Occupier Services, Capital Markets & Branch Head, Pune, Knight Frank India said\u00a0<\/em><\/strong>\u201cPune\u2019s residential market continues to benefit from healthy end-user demand, supported by sustained employment generation, improving connectivity and strong developer confidence. Buyers are increasingly gravitating towards larger and higher-value homes across established growth corridors, while continued infrastructure investments are expected to further strengthen demand across both established and emerging micro-markets.\u201d<\/em><\/p>\n

Looking ahead, Pune’s residential market is expected to continue benefiting from ongoing infrastructure investments, particularly the expansion of metro connectivity along the\u00a0Hinjewadi\u2013Shivajinagar corridor<\/strong>, together with improvements across the city’s eastern and western growth corridors. Supported by sustained employment generation across the\u00a0GCC, manufacturing and technology sectors<\/strong>, and Pune’s relative affordability compared to larger metropolitan markets, these developments are expected to support residential demand across both established and emerging locations.<\/p>\n","protected":false},"excerpt":{"rendered":"

Pune:\u00a0Knight Frank India, in its latest report,\u00a0India Real Estate H1 2026, highlighted Pune’s continued real estate momentum, with the city recording its\u00a0highest-ever half-year office leasing volume\u00a0while maintaining healthy residential demand during the first half of 2026.The office market witnessed gross leasing transactions of\u00a06.6 mn sq ft, registering a\u00a029% year-on-year (YoY)\u00a0increase despite a high base in […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[71,111,44,172],"tags":[],"class_list":["post-25026","post","type-post","status-publish","format-standard","hentry","category-business","category-industrial","category-pune","category-real-estate"],"_links":{"self":[{"href":"https:\/\/timesofpowerandvoice.com\/index.php?rest_route=\/wp\/v2\/posts\/25026","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=25026"}],"version-history":[{"count":1,"href":"https:\/\/timesofpowerandvoice.com\/index.php?rest_route=\/wp\/v2\/posts\/25026\/revisions"}],"predecessor-version":[{"id":25027,"href":"https:\/\/timesofpowerandvoice.com\/index.php?rest_route=\/wp\/v2\/posts\/25026\/revisions\/25027"}],"wp:attachment":[{"href":"https:\/\/timesofpowerandvoice.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25026"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/timesofpowerandvoice.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25026"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/timesofpowerandvoice.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25026"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}