Pune's real estate market witnessed unprecedented growth in 2024, with both office space transactions and residential sales achieving historic milestones, according to Knight Frank India's latest report, India Real Estate: Office and Residential (July–December 2024).
The city recorded an all-time high of 8 million square feet in office space transactions, reflecting a 19% year-on-year (YoY) growth. This remarkable performance was buoyed by robust leasing activity in the first half of the year, with steady momentum maintained in the latter half.
Notably, flexible office spaces accounted for 35% of the total transactions, signaling a growing preference for hybrid work models. Office rental rates also rose by 5% YoY, reaching INR 77 per square foot per month.
Pune added 5.7 million square feet of new office space in 2024, marking a 58% YoY increase, driven by heightened developer confidence. The flex segment experienced significant growth, with a 112% YoY rise in leasing activity. Other major contributors included India-facing businesses and global capability centers (GCCs), which together accounted for 50% of total office space transactions.
The residential market also set new benchmarks, with sales exceeding 52,000 units for the first time since 2010. Residential unit prices saw a 6% YoY increase, averaging INR 4,778 per square foot. The INR 5–10 million segment dominated, comprising 45% of total sales. Meanwhile, premium housing segments (INR 20–50 million and INR 100–200 million) experienced YoY growth of 68% and 122%, respectively.
The year also saw an unprecedented surge in new residential project launches, with 59,548 units introduced—a 40% YoY increase. This growth was supported by rising demand from IT professionals, improved infrastructure, and evolving buyer preferences.
P Vilas, National Director - Occupier Services and Branch Head, Pune at Knight Frank India, commented, “Pune’s real estate market continues to thrive, driven by evolving occupier needs and robust demand from end-users. Infrastructure advancements, coupled with a strong focus on hybrid workspaces and lifestyle housing solutions, position the city as a leading player in India’s real estate landscape.”