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Pune Emerges as India's Leading Gainer in Office Space Market

Strategic Insights

— 2 min read

Pune has emerged as a thriving office space market in India, nearly doubling to 6.2 million sq. ft. as of September 2025, driven by demand from the BFSI sector, co-working firms, and IT companies. Bengaluru, despite facing severe traffic congestion, remained the top choice for companies, particularly those in the IT and ITeS sectors. However, Kolkata's commercial real estate struggled, with net office absorption falling 19% from the previous year, due to sluggish demand, slower infrastructure development, and limited Grade-A supply.

Key Takeaways:

  • Pune emerged as the leading gainer in the office space market, with a 97% yearly rise in net absorption and a 168% rise in new completions.
  • Bengaluru recorded the highest office leasing in India, with 9.95 million sq. ft. of space absorbed until September 2025, a 22% increase from the previous year.
  • Kolkata registered a decline in office leasing, with absorption falling 19% from the previous year, representing a bumpy recovery across top seven office markets in the country.
  • IT and ITeS companies accounted for 27% of total office space absorption in the country, with a large share concentrated in the Whitefield micro-markets and Bengaluru's Outer Ring Road.
  • The city of Bengaluru saw a 9% rise in rentals, the highest among major metros, while its vacancy rate dropped to 12.2% from 13%, reflecting quickly absorbed additional spaces.
  • Kolkata's office space vacancy rate remains high at 17.8%, only slightly down from 18.3% in 2024, representing sluggish demand.
  • Across India's top seven office markets, net office absorption reached a six-year high of 42 million sq. ft., driven by continued expansion in tech, BFSI, and flexible co-workspaces.
  • Rentals rose 6% year-on-year to Rs 90 per sq. ft., while overall office space vacancy reduced to 16.2%.

Statistics:

  • Pune's office space market grew by 6.2 million sq. ft. as of September 2025.
  • Bengaluru recorded the highest office leasing of 9.95 million sq. ft. until September 2025.
  • Kolkata's office absorption fell by 19% from the previous year.
  • IT and ITeS companies accounted for 27% of total office space absorption in the country.
  • Bengaluru saw a 9% rise in rentals.
  • Kolkata's office space vacancy rate is 17.8%.
  • Net office absorption reached a six-year high of 42 million sq. ft. across India's top seven office markets.
  • Rentals rose 6% year-on-year to Rs 90 per sq. ft.

Sources:

  • ANAROCK Research
  • Contify.com
  • Indian National Press (Bombay) Pvt. Ltd.

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