Net absorption for 2025 at an all-time high, reflecting strong occupier expansion

• Quarterly gross leasing in Q4 2025 totalled 1.87 mn sq ft, with activity led by fresh leases and pre-commitment deals. IT & ITeS occupiers accounted for 31% of leasing, followed by manufacturing/industrial at 20% and co‑working providers at 19%.
• Net absorption was 1.99 million sq ft in Q4, down 20% q-o-q. Despite this, Pune achieved its highest annual net absorption by year-end, led by strong occupier footprint growth in eastern SBD and robust performance in the CBD.

New supply hits a record high for the city, driven by substantial completions across submarkets

• The city recorded 1.97 million sq ft of new supply in Q4 2025 across three projects in the SBD and Suburbs submarkets. Annual supply reached a record 11.6 million sq ft, reflecting robust developer activity and strong market confidence.
• New supply additions during the year outpaced net absorption, pushing the overall vacancy to 18.4%, an increase of 410 bps y-o-y.

Overall rents rise marginally q-o-q, supported by sustained tenant demand

• Overall gross rentals rose marginally by 0.2% q-o-q and 2% y-o-y. Among submarkets, the Suburbs recorded the strongest annual growth at 4%, followed by the CBD with a 3% y-o-y increase.
• Capital values grew by 1.7% q-o-q and 5.0% y-o-y, accompanied by yield compression across all submarkets.

Outlook: Robust incoming new supply and growing demand from GCCs expected to drive leasing activity in 2026

• In 2026, new supply is expected to be 9–10 million sq ft, led by the SBD market, with vacancy likely to remain northward bound, despite robust occupier activity anticipated over the next year.
• Tech, flex and manufacturing sectors are likely to remain the key drivers of demand. Rising GCC activity in SBD East is set to provide an impetus to pre-commitment activity and boost net absorption to new highs in 2026.