ASIA PACIFIC OUTLOOK 2025

PUNE

KEY MESSAGES

Supply

Demand

Rents

Key Outlook

GCC, IT-BPM, and flexible workspace providers are expected to remain the primary occupiers in the leasing market. These sectors will continue to drive demand for office spaces due to their ongoing growth and evolving workplace needs. The upcoming metro corridors in the submarkets of PBD West and SBD West are expected to drive increased office space demand in these areas.

The city is expected to receive new supply of ~7.0 msf in 2024, of which the majority, at 51%), is concentrated in the SBD East submarket.

Net absorption is expected to see steady growth over the next few years. In 2028, net absorption is likely to touch 5.5 msf on the back of quality supply hitting the market in prime locations such Kharadi, Hinjewadi, Baner and Yerwada. Overall vacancy rates are likely to increase marginally in 2024 mainly due to the supply additions of around 7.0 msf. The vacancy rate is likely to increase by 150 bps y-o-y in 2024 at 12.3%.

Rents are expected to grow by 0.7%–1% y-o-y in 2024, with steady growth of 1.1%–1.7% projected from 2025 onwards.

This gradual rental increase will raise rents from INR1,092 per sq ft per year in 2023 to INR1,105in 2024. By the end of 2029, rents are likely to reach INR1,172 per sq ft per year.

Interestingly, the CBD submarket is contributing to around a 32% share of the total 2024 supply.

Cushman & Wakefield

ASIA PACIFIC OUTLOOK 2025