Pune, April 04, 2024: Knight Frank India, in their latest report – India Real Estate: Residential and Office Q1 2024 (January – March 2024) cited that Pune constituted nearly 30% of the flex office transactions across the leading eight markets in the country. This is owing to the city recording the highest leasing activities for flex spaces in the country at 1.2 mn sq ft during Q1 2024. Transaction volumes in the flex offices space in Pune grew by 300% YoY from 0.3 mn sq ft in Q1 2023.
| End-User Licensee/Buyer | Flex | GCC | India Facing Business | Third Party IT Services | Total |
| Area transacted in mn sq ft | 1.2 | 0.3 | 0.3 | 0.2 | 2 |
Source: Knight Frank Research
Both Global Capability Centres and India facing businesses witnessed transactions of 0.3 mn sq ft, each. Third-party IT services, which saw no traction in Q1 2023, recorded space transactions of 0.2 mn sq ft in Q1 2024.
Pune recorded office space transactions of 1.9 million square feet (mn sq ft) in Q1 2024. In terms of growth, Pune occupied second position across eight markets in the country, as the city registered a substantial growth of 146% YoY in Q1 2024. Office completions in the city grew by 183% to 1.8 mn sq ft in Q1 2024 from 0.6 mn sq ft in Q1 2023. The city witnessed rental value appreciation of 4% YOY, taking the aggregated rent to INR 75 per sq ft/ month.
| Office Transactions
(Million Square Feet) |
Completions
(Million Square Feet) |
||||||
| Cities | Q1 2023 | Q1 2024 | % Change YoY | Cities | Q1 2023 | Q1 2024 | % Change YoY |
| Bengaluru | 3.5 | 3.5 | 0% | Bengaluru | 1.3 | 5.0 | 275% |
| NCR | 2.6 | 3.1 | 19% | Hyderabad | – | 3.7 | – |
| Hyderabad | 0.8 | 3.0 | 261% | Pune | 0.6 | 1.8 | 183% |
| Mumbai | 2.2 | 2.8 | 29% | NCR | 2.0 | 1.6 | -21% |
| Pune | 0.8 | 1.9 | 146% | Ahmedabad | 0.3 | 0.5 | 119% |
| Chennai | 0.8 | 1.2 | 45% | Mumbai | 0.0 | 0.4 | 986% |
| Ahmedabad | 0.4 | 0.5 | 18% | Chennai | 0.3 | – | -100% |
| Kolkata | 0.2 | 0.2 | -9% | Kolkata | – | – | – |
| All cities | 11.3 | 16.2 | 43% | All cities | 4.6 | 13.0 | 185% |
Pune witnessed a total of residential sales volume of 11,832 units with a YoY growth of 14%, whereas 13,293 units were launched in the period with an annual growth of 15% YoY.. The average weighted residential price witnessed an increase of 4% YoY during Q1 2024 with a value of INR 4,552/- sq ft.
Market Summary: Top Eight Indian Cities
| Sales | Launches | |||||
| City | Q1 2023 | Q1 2024 | % Change (YoY) | Q1 2023 | Q1 2024 | % Change (YoY) |
| Mumbai | 20,300 | 23,743 | 17% | 25,735 | 25,263 | -2% |
| NCR | 15,392 | 15,527 | 1% | 14,486 | 14,893 | 3% |
| Bengaluru | 13,390 | 13,133 | -2% | 12,073 | 13,135 | 9% |
| Pune | 10,368 | 11,832 | 14% | 11,540 | 13,293 | 15% |
| Hyderabad | 8,300 | 9,550 | 15% | 10,986 | 11,140 | 1% |
| Ahmedabad | 4,225 | 4,673 | 11% | 5,349 | 5,159 | -4% |
| Chennai | 3650 | 3,950 | 8% | 3,952 | 4,350 | 10% |
| Kolkata | 3501 | 3,937 | 12% | 3,178 | 6,021 | 89% |
| Total | 79,126 | 86,345 | 9% | 87,299 | 93,254 | 7% |
Source: Knight Frank Research
During Q1 2024, Sales in Pune in ticket size category of 10mn and above across the leading eight cities in the country accounted for the second highest annual growth in percentage terms with an increase of 120% from 1,037 units in Q1 2023 to 2,276 units in Q1 2024. 46% of the city’s sales occurred in the INR 5 mn – 10 mn segment. The share of ticket size below 5 mn was 35% while that of above INR 10 mn was 19%.
Ticket-size split of sales
| Ticket Size Categories | <5 mn | 5-10 mn | 10 mn> | Total |
| Q1 2024 | 4,157 | 5,399 | 2,276 | 11,832 |
| YoY % change | -7% | 11% | 120% | 14% |
Source: Knight Frank Research
– End –
Shishir Baijal, Chairman & Managing Director, Knight Frank India, said “The real estate market experienced another exceptional period characterised by robust performances in both the office and residential sectors. The residential segment particularly witnessed a significant surge, propelled by continued growth in sales in the higher price category of INR 1 Crore and above. This not only demonstrates a strong demand trajectory but also reflects buyers’ confidence in making long-term commitments. Concurrently, the office sector maintained its upward trajectory, delivering one of the most impressive quarterly demand performances to date. The country’s economic stability has spurred businesses operating in India to expand their operations, consequently driving demand for office spaces. Additionally, many companies are now reverting to conventional office setups, either reducing or discontinuing their work-from-home policies, further boosting demand. We anticipate these activities to continue at a robust pace in the foreseeable future backed by the stable economic policies and favourable domestic conditions.”
