In 2025, Pune’s GLV is projected to surpass 10 msf, setting a new historic high and reinforcing the city’s growing stature in India’s commercial real estate landscape.

Source: Cushman & Wakefield

This strong momentum was driven by robust demand from sectors such as Engineering & Manufacturing, IT-BPM, and Flexible workspaces, which together, accounted for ~4.6 msf (close to 70% share) in H1 2025. A total of ~2.7 msf of GCC transactions were recorded in H1 2025, of which BFSI, Engineering, Manufacturing, and IT-BPM were the top contributors to the GCC with a share of 36%, 51% and 10% respectively.

Flexible Workspaces also continued their upward trajectory, further cementing Pune’s position as the second-largest flex market after Bengaluru. Over the past three years, Flexible Workspaces in Pune have maintained an average annual footprint of 1.56 msf, accounting for around 19% of the city’s overall GLV.

Supply Pipeline continues to remain strong

On the supply side, Pune saw a healthy infusion of new office space in the second quarter, with nearly 8 MSF of new supply added in H1 2025, comprising primarily 90% Grade A and A+ office space.  This increase in supply has resulted in a marginal rise in vacancy levels to 12–13%, a shift that is being viewed positively by market participants. After several years of vacancy rates staying below 10%, this evolution toward a more balanced market environment is facilitating swifter deal closures and offering greater options to occupiers seeking large contiguous spaces.

By the end of 2025, with continued quality additions to stock, vacancy is projected to rise to 15–16%, making it a more balanced market. The city is expected to cross 15 MSF in new office supply by year-end, marking a historic high for the Pune office market.

Commenting on the performance, Moinuddin Patel, Managing Director- Pune, Cushman & Wakefield said: “Pune’s office market is poised to achieve a historic milestone in 2025, with gross leasing volumes projected to exceed 10 million square feet for the first time. This anticipated record is underpinned by sustained demand across key sectors. The continued momentum in the flexible workspace segment, the resilience demonstrated by engineering and manufacturing occupiers, and the steady expansion of Global Capability Centres (GCCs) collectively underscore Pune’s growing strategic importance within India’s commercial real estate landscape. Supported by a healthy pipeline of high-quality supply and a more balanced, occupier-friendly environment, the city is well-positioned to cater to the evolving space requirements of both domestic and global enterprises.”

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BENGALURU: Embassy Office Parks REIT (NSE: EMBASSY / BSE: 542602) (‘Embassy REIT’), India’s first listed REIT and the largest office REIT in Asia by area, reported results today for the first quarter ended June 30, 2024. 

Aravind Maiya, Chief Executive Officer of Embassy REIT, said, “We are delighted to report another excellent quarter of strong leasing across our portfolio. We leased 1.9 msf this quarter, marking a 70% YoY increase, and we have a strong pipeline across Bangalore, Noida, and Chennai. We are excited to strengthen our partnership with one of our largest occupiers through a new redevelopment project at Embassy Manyata, a testament to our best-in-class office solutions. Our distributions have grown 4% YoY, and we crossed the 100k unitholder mark this quarter, a 25x increase since our listing. We’re seeing a lot of tailwinds in our business, and we are focused on sustaining this momentum and delivering value to all our stakeholders.”

The Board of Directors of Embassy Office Parks Management Services Private Limited (‘EOPMSPL’), Manager to Embassy REIT, at its Board Meeting held earlier today, declared a distribution of ₹531 crores or ₹5.60 per unit for Q1 FY2025. The record date for the Q1 FY2025 distribution is August 02, 2024, and the distribution will be paid on or before August 09, 2024.

Business Highlights

• Leased 1.9 msf across 22 deals at 11% leasing spreads
• Global Capability Centres (GCCs) remain the primary drivers of demand and contributed 70% of the quarter’s leasing activity
• Bengaluru Occupancy is at ~90%, Mumbai at 99%, and Chennai at 95%. 3 properties at 100% occupancy – Embassy GolfLinks in Bengaluru, Embassy 247, and FIFC in Mumbai. Embassy Galaxy in Noida at 99%.  

Financial Highlights

• Grew Revenue from Operations and Net Operating Income (NOI) for the commercial office segment by 4% YoY; on track to meet FY25 NOI guidance
• Distributed ₹531 crores or ₹5.60 per unit, up 4% YoY and 7% QoQ
• Raised debt of ₹1,450 crores at an average rate of 8.06%; c.₹18,000 crore debt book remains highly competitive at 7.8% average cost 

Operational & Growth Highlights

• Completed acquisition of Embassy Splendid TechZone, a ~5 msf premium business park in Chennai
• Launched 0.9 msf office block redevelopment at Embassy Manyata in Bengaluru with a 3x increase in leasable area, at a potential 20% yield on cost
• Strong development pipeline of 8.6 msf with a total capital investment of ₹4,600 crores; expected to add approximately ₹1,000 crores to NOI upon stabilization
• SEZ strategy on track: 3.4 msf denotified since April’23, 0.8 msf demarcated to non-processing areas, with 65% already leased

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PUNE: CapitaLand Investment Limited (CLI) has commenced operations for Phase 1 of International Tech Park Pune, Kharadi (ITPP-Kharadi). Spread over 1.5 million square feet (sq ft), the two office blocks in Phase 1 development of ITPP-Kharadi have achieved a leasing commitment of nearly 80% from large corporations such as 315 Work Avenue, Acuity Knowledge Partners, Bharti Airtel, Deloitte, Hewlett Packard Enterprise, NielsenIQ, PTEC Technology Solutions, SAP Labs, Sulzer, Tablespace, Whirlpool India, and ZS Associates.

Strategically located near the Pune Lohegaon International Airport, ITPP-Kharadi is part of Pune’s well-established IT corridor, Kharadi. ITPP-Kharadi is developed in two phases, with Phase 2 development of the 1.5 million sq ft office block expected to complete by 4Q 2023. Upon completion, ITPP-Kharadi will house over 30,000 IT service professionals.

Gauri Shankar Nagabhushanam, CEO, of India Business Parks, CLI said: “Pune is one of our key growth markets in India. ITPP-Kharadi is our third business park in Pune, and it exemplifies our strong commitment to contributing to Maharashtra’s flourishing IT infrastructure. We extend a warm welcome to our new tenants and are confident that our park’s collaborative spaces, state-of-the-art amenities, and lifestyle and technology solutions will serve our clients well.”

ITPP-Kharadi is developed under CLI’s Ascendas India Growth Programme[1], with GIC as its principal investor. The 16.5 acres IT campus, with a total development potential of 3 million sq ft is being developed at a total project cost of INR 17.5 billion (S$311 million). ITPP-Kharadi, which is designed with green and sustainable features, has secured an INR 13 billion (S$231 million) green loan from HSBC India. ITPP-Kharadi is CLI’s third business park development in Pune, following the International Tech Park Pune, Hinjawadi, and aVance Business Hub, Hinjawadi.

A sustainable business park for the Kharadi community:

ITPP-Kharadi has registered for the U.S. Green Building Council’s Leadership in Energy and Environmental Design Gold certification, Platinum Certification by the Indian Green Building Council, and the WELL Gold Certification by the International WELL Building Institute. Its sustainable features include an urban farm, rooftop solar panels to generate renewable energy, LED and motion sensor lighting, EV charging, double-glazed facades with fins for energy efficiency, water-saving fittings, rainwater recycling, and organic waste converters.

The park also features an array of modern amenities for collaborative team activities, including outdoor meeting areas, a rooftop sports arena for cricket, tennis, and futsal, food courts, and a planned amphitheater for events and team meetings. Tenants can access park amenities and updates via the CapitaStar@Work app, CapitaLand’s workspace experience solution that provides an elevated and integrated user experience across its workspace properties.

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