Net absorption is significantly up q-o-q, signalling an uptick in leasing activity

• Pune’s retail sector recorded robust net absorption of 46,100 sq ft in Q4 2025 across both malls and high streets, marking a significant increase from Q3 2025. Overall leasing activity was concentrated in malls, which accounted for 87% of the total volume.
• Demand was primarily driven by Home & Furnishing and Fashion & Apparel retailers, with major traction in the Secondary micro market as brands actively pursued expansion opportunities within mall environments.

Overall vacancy fell q-o-q as demand rebounded

• No new retail completions were recorded in 2025.
• The overall vacancy rate declined to 12.2% in Q4 2025, reflecting a 50 bps decline q-o-q.

Rents witness a marginal increase

• Overall rents recorded a marginal increase, both q-o-q and y-o-y, driven by healthy leasing activity and sustained demand. With limited new supply expected in the coming years, rents are anticipated to continue rising.
• Overall capital values also increased marginally. Prime City registered a substantial 13.2% year-on-year growth.

Outlook: Limited upcoming supply, with retail leasing expected to remain strong and high streets likely to dominate

• Retail leasing is expected to grow, supported by strong demand from the F&B and Fashion & Apparel segments. Tightening mall vacancy in premium projects and limited future supply may shift more activity towards high streets.
• Two projects totalling 0.7 million sq ft are anticipated to become operational in H1 2026, both serving as support retail within mixed-use developments.