Pune office leasing surges 54% QoQ in Q2 2026, fueled by GCC expansion: Report

According to a Cushman & Wakefield report, flexible workspace operators emerged as the largest occupier category during this period, securing a 45 per cent share of the overall leasing activity. The sustained occupier confidence across the Grade A office market pushed the first-half leasing total for 2026 to 5.31 msf.

Grade A office spaces are premium commercial properties featuring top-tier infrastructure, modern amenities, and prime locations.

The report noted that the city's office demand remained heavily concentrated in a specific geography. The SBD East corridor remained the leading office destination, accounting for nearly 56 per cent of quarterly leasing activity, followed by PBD West with a 33 per cent share. Together, these two office corridors contributed nearly 90 per cent of total leasing.

Net absorption rose sharply to 2.51 msf during the quarter, taking the first-half net absorption to 3.55 msf. The report highlighted that despite the addition of over 3 msf of new Grade A office space, vacancy remained stable at 13.2 per cent and improved by 51 basis points YoY, illustrating the market's capacity to absorb new supply. Office rentals maintained an upward trajectory, with stock-weighted average rents increasing 2.7 per cent YoY.

On a broader scale, the report stated that the pan-India office sector gross leasing volume reached approximately 43 msf, marking the highest first-half leasing volume on record. GCCs acted as the principal growth engine nationwide, leasing approximately 16.5 msf during the first half of 2026 and accounting for 38 per cent of total leasing activity.

Parallel to the office sector, Pune's residential market witnessed a record quarter with 13,756 new unit launches in the second quarter of 2026, the highest quarterly supply recorded in the last three years.

New launches increased by 21 per cent QoQ and 27 per cent YoY. The NH4 Bypass (North) corridor emerged as the most active residential market, contributing 41 per cent of total launches, led by Hinjewadi and Tathawade. The North-East corridor followed with a 28 per cent share.

The report detailed that mid and high-end housing continued to dominate new supply, together accounting for nearly 78 per cent of quarterly launches. The mid-segment contributed 41 per cent of new launches, while the high-end segment accounted for 37 per cent. Residential capital values increased 5.4 per cent QoQ and 1.5 per cent YoY.

Pune's retail market recorded leasing activity of 0.25 msf in the second quarter, a 38 per cent QoQ and 8 per cent YoY increase. Mall leasing accounted for 0.16 msf, led by fashion brands at 42 per cent, while Main Street leasing stood at 0.09 msf. (ANI)