Office Space Stock Jumps 7% as Pune Tops 100 Million Sq Ft

India's occupied office space stock grew 7 per cent year on year to nearly 918 million square feet across eight leading markets at the end of September, according to a Knight Frank report released on Sunday.

Occupied office space across the eight markets increased by 58.3 million sq ft from 859.4 million sq ft a year earlier, reflecting sustained expansion by corporate occupiers and evolving workplace requirements, the consultancy said. The eight markets tracked in the Knight Frank report are Bengaluru, the National Capital Region (NCR), Mumbai, Hyderabad, Pune, Ahmedabad, Chennai and Kolkata.

Bengaluru retained its position as the country's largest office market, with occupied stock rising 9 per cent to 227.9 million sq ft. The NCR remained the second-largest market, with occupied stock edging up 2 per cent to 178.3 million sq ft, while Mumbai stood at 148.2 million sq ft after a 5 per cent increase.

The standout development of the quarter was Pune, which crossed the 100-million-sq-ft mark for the first time to reach 101 million sq ft, up 9 per cent from 92.4 million sq ft a year earlier. Hyderabad recorded the fastest growth among the larger markets, with occupied office space rising 11 per cent to 119.8 million sq ft from 108.3 million sq ft.

"India's office markets continue to demonstrate resilience, supported by business expansion and the evolving workplace requirements of occupiers," said Viral Desai, international partner and senior executive director for occupier strategy solutions, industrial and logistics, capital markets and retail at Knight Frank.

Bengaluru holds top spot as Pune crosses the office space milestone

Desai said Pune crossing 100 million sq ft of occupied stock was an important milestone for the market, reflecting the city's growing scale as a commercial real estate destination. Sustained growth across Bengaluru, Hyderabad and other leading markets highlighted the breadth of activity across the country's property landscape, he added.

Pune's rise has been driven by information technology companies, global capability centres and manufacturing firms expanding their footprints. Relatively lower rentals compared with Mumbai and Bengaluru have kept the Pune office market attractive for large occupiers, even as the city adds high-quality Grade A offices.

Hyderabad logs fastest office space expansion among large markets

Hyderabad's 11 per cent growth in occupied office space was the quickest among the larger markets, taking its stock to 119.8 million sq ft. Analysts attribute the city's momentum to large pre-commitments by technology and pharmaceutical companies, besides a steady pipeline of new Grade A offices entering the market.

Among the smaller markets, Ahmedabad recorded the fastest growth at 10 per cent, with occupied stock rising to 28 million sq ft from 25.5 million sq ft. Chennai's occupied office space grew 5 per cent to 89.5 million sq ft, while Kolkata's stock increased 9 per cent to 25 million sq ft.

What the office space growth means for commercial real estate

The 7 per cent expansion in occupied office space underscores the resilience of India's commercial real estate sector at a time of global uncertainty over workplace demand. Leasing activity has been supported by global capability centres, flexible workspace operators and domestic enterprises expanding their headquarters, industry watchers say.

Continued absorption in the top eight markets is expected to keep vacancy levels in check and support rental growth in prime business districts, although fresh supply completions in 2027 will test the pace of demand in the Pune office market and elsewhere. For now, the Knight Frank report suggests India's office market remains firmly in expansion mode.