Pune's commercial real estate market continued to show strong activity in Q2 2026, supported by sustained occupier demand across established and emerging micro-markets. The city recorded 89.54 million sq. ft. of total office stock, with 3.0 million sq. ft. of new supply and 3.2 million sq. ft. of gross absorption representing a 54% quarter-on-quarter increase. Overall vacancy stood at 19.1%, indicating a market with significant available inventory alongside continued leasing activity.
The leasing market remained diversified, with 76% of transactions involving conventional office space (2.8 million sq. ft.) and 24% involving flex space (0.9 million sq. ft.). Sector-wise demand was led by Flex at 45%, followed by IT-BPM at 20% and BFSI at 10%.
At the micro-market level, SBD East held the largest stock at 46.3 million sq. ft., followed by PBD West at 19.1 million sq. ft. and SBD West at 14.19 million sq. ft. Vacancy varied significantly across micro-markets from a low of 2.5% in SBD West to a high of 29% in PBD East, with CBD at 19.7% and SBD East at 14.5%. Rental values also varied by location, ranging from ₹50–85 per sq. ft. in PBD West to ₹80–140 per sq. ft. in the CBD.
Key leasing transactions during the quarter included TCS (3.96 lakh sq. ft.) and Smartworks (8.5 lakh sq. ft.) in SBD East, and Accenture (6 lakh sq. ft.) in PBD West, reflecting continued demand from both IT-BPM occupiers and flex-space operators. On the supply side, notable construction activity included Godrej Yerwada (11 lakh sq. ft.) and Panchshil Trade Centre in Kharadi (8 lakh sq. ft.).
Overall, Q2 2026 reflects an active Pune office market, with strong absorption, continued supply additions, and diverse occupier demand across both conventional and flex space segments.
Pune CRE Market: Q2 2026
An in-depth analysis of the City's key market indicators, competitive landscape, and emerging opportunities to support strategic planning.
