The Pune Outer Ring Road is a proposed 170-kilometre express corridor being developed by the Maharashtra State Road Development Corporation (MSRDC). Once operational, it will encircle the city and connect major national highways such as NH-4 (Mumbai–Bangalore Highway), NH-50 (Pune–Nashik Highway) and NH-9 (Pune–Solapur Highway).
Importantly, the ORR will link emerging commercial micro-markets including Hinjewadi Phase 3, Wagholi, Hadapsar Extension, Chakan and Pimpri-Chinchwad, integrating them into Pune’s mainstream commercial real estate landscape.
The Outer Ring Road is expected to open up substantial new land for development, ease city traffic congestion and create additional business corridors. As a result, new Grade A office spaces, modern IT parks and flexible workspace centres will be developed in localities that previously saw limited interest due to poor connectivity.
Types of Companies Likely to Benefit
Pune has a strong base of IT and ITES occupiers clustered primarily around Hinjewadi and Kharadi. With the improved connectivity provided by the ORR, these companies are expected to expand towards Hinjewadi Phase 3 and surrounding areas where larger floor plates and campus-style office parks are more viable and cost-effective.
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Global Capability Centres (GCCs)
Pune continues to attract Global Capability Centres in segments such as automotive R&D, engineering services and financial technology. The ORR will connect new corridors to talent-rich residential zones, encouraging GCCs to set up large, cost-efficient, built-to-suit office facilities in emerging commercial districts.
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BFSI Firms and Back-Office Operations
The banking, financial services and insurance sector accounted for approximately 29 per cent of Pune’s office leasing volume in the first quarter of 2025. Many BFSI companies are expected to establish back-office processing centres and support operations in business parks along the ORR due to lower rental costs and the availability of large contiguous spaces.
The demand for managed and flexible office solutions remains robust in Pune. As the ORR expands access to suburban corridors, flex operators will have opportunities to open new centres in areas such as Wagholi and Hadapsar Extension to cater to enterprise clients and start-ups seeking well-connected, modern workspaces.
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Large Domestic Corporations
Apart from the IT and BFSI segments, large Indian companies in sectors such as consulting, education, and professional services are also likely to benefit from upcoming developments near the ORR. Many firms are expected to decentralise operations and secure larger land parcels for future expansion.
Micro-Markets to Watch
Hinjewadi Phase 3 is positioned to experience substantial IT park development, benefiting directly from improved access to the Mumbai–Pune Expressway. Wagholi and the Hadapsar Extension are likely to become cost-effective alternatives for companies seeking large campuses supported by residential infrastructure. Although primarily industrial, pockets of Chakan and Pimpri-Chinchwad may also evolve as mixed-use zones offering office spaces for corporations that require proximity to manufacturing clusters.
Impact on Commercial Rentals
The Outer Ring Road is projected to reduce pressure on Pune’s established commercial hubs such as Kalyani Nagar and Baner. By unlocking new supply, it is expected to help stabilise rental growth in the city’s core while offering companies more competitive options. Grade A office spaces in established districts currently command average rentals of INR 90 to 110 per square foot per month. Developments along the ORR are expected to offer modern commercial spaces at rates 15 to 20 per cent lower than these benchmarks, making them attractive for companies focused on operational efficiency.
Considerations for Occupiers and Investors
Organisations planning to expand or consolidate office operations in Pune should closely evaluate emerging locations linked to the Outer Ring Road. These areas offer the dual benefits of lower occupancy costs and larger, more flexible layouts to support future growth.
Engaging experienced real estate consultants in Pune is strongly recommended to identify strategic sites, secure competitive lease terms and navigate local approvals and zoning requirements in these developing business corridors.
The Pune Outer Ring Road is more than an infrastructure project. It represents a growth corridor that will shape the next phase of Pune’s commercial real estate market. For IT companies, GCCs, BFSI occupiers and flex space operators, this project provides an opportunity to access modern Grade A offices in well-connected new districts with significant cost advantages.
Companies planning to lease high-quality office space near the Outer Ring Road would benefit from real estate consultants such as Address Advisors to secure the best locations and make well-informed, future-ready real estate decisions.
