Pune’s office leasing witnesses growth in Q1 2025 on Y-o-Y basis, reaching 1.3 mn. sq. ft.

Pune, 4th April 2025: CBRE South Asia Pvt. Ltd, India’s leading real estate consulting firm, today announced the findings of its report, ‘CBRE India Office Figures Q1 2025’. According to the report, office space leasing in Pune witnessed a 55% Y-o-Y growth reaching 1.3 mn. sq. ft. in Q1 2025.

During Jan-Mar’25 key sectors that drove absorption included Banking, financial services, insurance (36%), Flexible space operators (24%) and Technology (20%).

The report highlighted that Pune’s office space take-up during Jan-Mar’25 was primarily driven by small-sized deals.

On a pan-India basis, the office sector recorded a gross absorption of 18.0 million sq. ft. in the Jan-Mar’25 period, reflecting a 5% year-over-year growth. Bengaluru, Delhi-NCR, and Mumbai collectively accounted for approximately 64% of the total leasing activity.

BFSI firms recorded over 100% y-o-y growth in office leasing in Jan-Mar’25, accounting for a 26% share of total office leasing. GCCs accounted for 57% of the BFSI leasing in Jan-March’25.  American banks (48%) followed by domestic banks (31%) dominated BFSI leasing in the quarter. Moreover, American BFSI firms contributed to 70% of the GCC leasing within BFSI sector. Besides, this growth is significantly driven by Mumbai & Delhi together accounting for 60% of overall BFSI leasing in the quarter.

Other than the BFSI sector, the technology sector maintained a steady 24% share, while flexible space operators contributed 12%. Engineering and manufacturing firms held an 11% share, followed by research, consulting and analytics companies at 8%, and life sciences firms at 5% in Jan – Mar 2025

Global corporates accounted for 62% of office space leasing, with American firms leading at 45%, followed by EMEA at 12% and APAC at 5%. Domestic firms contributed 38% to the total leasing activity. The demand from American corporates was primarily driven by the technology and the BFSI firms.

Global Capability Centres (GCCs) office leasing in Q1 2025 (Jan -Mar 2025), accounted for 45% of quarterly leasing at 8.0 mn. sq. ft. registering 66% year-on-year growth. GCC Leasing in Q1 2024 stood at 4.8 mn sq. ft. Bengaluru dominated GCC leasing with a 40% share, followed by Delhi at 24%, Chennai at 14%, Hyderabad at 10%, while Mumbai and Pune accounted for 6% and 5%, respectively.

Leasing in green-certified assets accounted for 81% of total office space take-up (14.7 mn sq. ft.) while 88% of new supply (8.6 mn sq. ft.) was green-certified in Q1 2025. This underscores the increasing commitment of both occupiers and developers to environmental, social, and governance (ESG) principles and sustainability initiatives. Bengaluru led with a 38% share in green-certified supply and 29% in leasing, followed by Delhi-NCR at 29% and 24%, respectively. Pune contributed 33% of the green-certified supply and 4% of leasing, while Mumbai recorded a 17% leasing in green-certified assets. Hyderabad and Chennai accounted for 11% and 10% of leasing in green-certified developments, respectively, while Kolkata and Ahmedabad contributed 3% and 2%, respectively.

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “India’s office sector is on a solid trajectory for sustained leasing growth, driven by strategic expansions from both domestic and global occupiers. Established hubs like Bengaluru, Hyderabad, Delhi-NCR, and Mumbai continue to lead, while cities like Chennai and Pune are gaining traction due to a strong talent base and a well-positioned supply pipeline. As businesses seek quality workspaces, the demand for sustainable offices is rising, with occupiers prioritizing employee experience and long-term growth. A key factor shaping this momentum is the growing presence of Global Capability Centers (GCCs). As multinational firms consolidate, their expansion, alongside the continued rise of BFSI, technology, and emerging sectors, reinforces India’s position as a global business hub. With strategic investments and a maturing office landscape, the sector is poised for long-term resilience and evolution.”

Ram Chandnani, Managing Director, Advisory & Transaction Services, CBRE India, said, “India is rapidly evolving as a global hub for GCCs, with multinational firms leveraging its skilled workforce to drive innovation and digital transformation. In 2025, GCCs are expected to account for nearly 35-40% of total office space absorption, with expansions not just in metro cities but also in emerging business hubs, supported by favorable state policies.

While U.S. firms remain dominant, European and Asian corporations are increasingly establishing GCCs in India, drawn by its cost efficiency and mature operational ecosystem. The technology and BFSI sectors will continue to drive this demand, with high-value capabilities emerging in aerospace, semiconductors, and life sciences. With companies viewing India as a strategic growth destination, the GCC sector is set to be a key pillar of the country’s office market expansion.”

Office sector positioned for sustained leasing growth across diverse occupier segments

• Sustained Growth Momentum: Building on two years of record leasing, the office sector is poised for continued expansion in 2025.
• Portfolio Expansion & Investments: Growth is expected to be driven by domestic and global firms strategically expanding their portfolios and making planned investments.
• Technology as a Key Demand Driver: Strong hiring expected in AI, ML, data analytics, and cloud computing will fuel office space demand.
• BFSI & E&M Sector Growth: These sectors are likely to continue expanding, led by digitalisation initiatives.
• Emerging Sectors on the Rise: Life sciences, semiconductors, and automobiles are anticipated to witness sustained demand.
• Established Markets Leading: Bengaluru, Hyderabad, Delhi-NCR, and Mumbai are expected to continue dominating leasing activity.
• Chennai & Pune Gaining Traction: A strong supply pipeline and skilled talent base are driving growth in these cities.
• Expansion into Tier-II Cities: Businesses are exploring new markets beyond metro hubs for strategic growth.
• Focus on Quality Workspaces: Domestic companies are prioritising premium office spaces to support long-term expansion.

GCCs set to strengthen their India foothold

• India as a GCC Hub: Global corporations are leveraging India’s talent pool, positioning GCCs as strategic hubs and secondary headquarters.
• Innovation & Digital Transformation: GCCs play a crucial role in driving high-value capabilities and digital initiatives.
• Multi-Functional Expansion: Growth is fuelled by the consolidation of existing operations and the entry of new firms.
• Rising Share in Leasing: GCCs are projected to account for 35-40% of total office space absorption in 2025.
• State-Specific Policies Boosting Growth: Incentives could drive leasing expansion beyond metro cities into smaller hubs.
• Technology Sector Leading Demand: Advanced solutions in AI, ML, and cloud computing are expected to drive GCC leasing.
• BFSI & E&M Sector Growth: Strong leasing activity is anticipated due to ongoing digital transformation efforts.
• Emerging Industries in GCCs: Semiconductors, aerospace, automobiles, and life sciences are likely to witness rising demand.
• Increasing Presence of Non-U.S. Firms: US-based firms are expected to remain key contributors to GCC leasing. In addition, European and Asian firms are expanding in India, attracted by a mature ecosystem and skilled workforce.
• Cost-Effective Talent & Short go-to-market Timelines: India’s competitive advantage continues to attract new GCC entrants.

Increased focus on investment-grade assets with future-ready workspaces and elevated employee experience

• Strong Investment Inflows: Inflow of investments in under-construction office assets, reinforcing expectations of sustained institutional-grade developments.
• Resilient Supply Pipeline: Several high-quality, investment-grade office assets set to enter the market in 2025.
• Leading Cities for New Completions: Bengaluru, Hyderabad, and Delhi-NCR expected to dominate, followed by Pune, Mumbai, and Chennai.
• Concentration in Integrated Tech Parks: 60-65% of new completions projected to be concentrated in integrated tech parks across major cities, reflecting a shift toward premium-grade developments.
• Focus on Green-Certified, Amenitised Workspaces: Developers prioritising sustainability and employee-centric office environments.
• Hybrid Work & Agile Spaces: Rise in reconfigurable layouts, energy-efficient designs, and high-end amenities to support evolving workforce needs.
• Emphasis on Workplace Experience: Hospitality-driven office environments set to enhance productivity, collaboration, and employee wellbeing.
• Balanced Supply-Demand Dynamics: Steady growth in demand expected to drive vacancy compression and stimulate further rental appreciation in 2025 across key micro-markets.
• Sustainability as a Core Feature: LEED and IGBC certifications becoming standard, with an industry-wide focus on eco-friendly materials and energy-efficient designs.
• State Government Incentives for Green Developments: Tax concessions and regulatory measures likely to drive adoption of sustainable real estate practices.