Net absorption down q-o-q

• Pune’s net absorption fell 84% q-o-q to just 4,600 sq ft in Q2 2026. Malls attracted strong interest from premium retailers, but limited availability resulted in deals occurring primarily through churn.
• Fashion & Apparel dominated leasing activity with an 85.5% share, followed by Food & Beverage (8.1%) and Jewellery (6.4%).

No new supply recorded in Q2 2026

• Limited supply reflects developers’ strategic pivot towards mixed-use schemes incorporating retail, moving away from standalone Grade-A mall projects.
• Vacancy fell 5 bps q-o-q to 11.78% in Q2 2026, driven by minimal absorption and no new supply.

Rental values increase marginally q-o-q

• Prime city rentals remained stable in Q2 2026. However, with no new supply anticipated in the pipeline, rents are expected to trend upwards in the coming quarters.
• Overall capital values increased significantly, with the Prime City market recording 4.4% y-o-y growth.

Outlook: Retail demand is expected to remain robust across high streets

• High streets across Pune’s key retail corridors are poised to capture growing retailer interest as the city’s mall supply pipeline remains virtually non-existent, with F&B and Fashion & Apparel brands driving demand.
• One mixed-use development of 0.2 million sq ft is slated for completion in H2 2026, adding retail supply within an integrated format.