Prime Highlights
- Pune has emerged as the leading city in India for new office space supply in the July–September 2025 quarter.
- The robust growth highlights Pune’s growing prominence as one of the country’s most attractive business destinations.
Key Facts
- Pune added 3.7 million sq ft of new office space, a 164% year-on-year increase, the highest among India’s top six cities, according to Vestian.
- Across the top six cities, new office supply rose 26% to 16.1 million sq ft, while leasing activity increased 6% to 19.69 million sq ft
Background
Pune has emerged as the top city in India for new office space supply during the July–September quarter of 2025, recording a massive 164% year-on-year increase, according to a report by US-based real estate consultant Vestian.
The city added 3.7 million sq ft of new office space in the third quarter, the highest among India’s top six cities. The sharp rise shows that global capability centres (GCCs) and domestic companies are demanding more premium workspaces.
Overall, India’s top six cities witnessed a 26% annual rise in new office supply to 16.1 million sq ft during the same period. Delhi-NCR followed with 3.1 million sq ft (up 35%), while Bengaluru recorded 3.4 million sq ft but saw a 6% decline. Chennai added 2.1 million sq ft of new office space, a 320% increase. Mumbai doubled its new supply to 1.8 million sq ft, while Hyderabad’s new supply fell 51% to 2 million sq ft. Kolkata saw no fresh additions during the quarter.
Vestian CEO Shrinivas Rao said the third quarter reported the highest office space absorption of 2025, driven mainly by GCCs. “Strong demand, ample supply, and a varied mix of tenants are expected to fuel the upcoming growth phase. Moreover, stricter H-1B visa regulations could increase the need for office space in India as global capability centers (GCCs) continue to expand,” he noted.
Developers such as DLF, Tata Realty, Hiranandani Group, Embassy Group, Prestige Estates, Sattva Group, and RMZ Group continue to play a major role in office construction.
Leasing of office spaces in India has gone up by 6% to 19.69 million sq ft across seven major cities, which is a clear indication of the steady comeback of the country’s commercial real estate sector. Pune’s excellent performance is a clear indication of its increasing importance as the most attractive business destination.
