Large Enterprise Deal Boosts Pune’s Premium Office Market

The leased office spans Smartworks’ Marisoft campus, a strategic commercial cluster in Kalyani Nagar that offers strong connectivity, robust social infrastructure, and access to a deep talent pool.

The integrated workspace includes collaboration zones, meeting rooms, recreational areas, convenience retail, wellness amenities, and fully tech-enabled infrastructure—core to Smartworks’ campus-led managed office model, which has been powering its enterprise expansion.

Enterprise Demand Driving Growth

“Our large-format campuses are built for scale, speed, and unified workplace experiences,” said Neetish Sarda, Founder & Managing Director, Smartworks.
He noted that the 1,000+ seat cohort, which accounted for only 12% of rental revenue three years ago, has now tripled to 35%, underscoring the company’s rising share of large enterprise clients.

Smartworks’ model allows businesses to expand across multiple cities, grow within existing clusters, or consolidate fragmented offices into larger, unified campuses—an increasingly preferred approach for GCCs and multinationals.

Financial Performance Reflects Robust Momentum

Earlier this month, Smartworks reported strong Q2 FY26 results, including:

• 21% YoY growth in revenue to ₹4,248 million
• 46% YoY rise in normalised EBITDA
• Healthy EBITDA margin of 16.4%
• Net-debt negative position
• Operating cash flow of ₹614 million

These numbers reflect Smartworks’ disciplined expansion strategy, improving operational efficiency, and the growing acceptance of its managed campus format across India’s prime office markets.

Smartworks’ Pan-India Footprint

With a ~12.7 million sq ft portfolio across 14 cities, Smartworks caters to a diversified client mix including GCCs, Forbes 2000 companies, multinationals, and large Indian enterprises.
The company notes that 30% of its rental revenue now comes from clients operating across multiple locations—evidence of its growing relevance in nationwide enterprise workspace strategies.

Analysis — Large Enterprise Leasing Continues to Power Managed Office Growth

The Smartworks–Wolters Kluwer deal reflects the continued shift towards flexible, scalable, experience-led campuses among global and domestic enterprises. Pune, particularly the Kalyani Nagar–Yerwada belt, remains a hotspot for GCCs and tech-driven companies, making the lease a timely expansion move.

Smartworks’ strong quarterly performance and rising share of large-format deals also indicate:

• GCC consolidation trends are accelerating
• Enterprises prefer managed campuses over fragmented traditional offices
• Pune’s office market continues to attract high-quality occupiers

With demand for flexible yet controlled work environments growing, Smartworks is well-positioned to capture a larger share of India’s evolving office landscape.

Also Read: Corporate Biggest User Of Coworking Spaces.

The post 🏢 Smartworks Leases 1.66 Lakh Sq Ft to Wolters Kluwer in Pune’s Kalyani Nagar, Strengthens Enterprise-Focused Growth appeared first on Square Feat India.

Bengaluru-based managed workspace provider Urban Vault (UV) has announced a major expansion in Pune with the launch of two new premium centers — Baner Central and Phoenix Fountainhead, Viman Nagar — adding 2,500 seats across nearly 1 lakh sq. ft. of Grade-A workspace.

With this expansion, Urban Vault’s total Pune portfolio has grown to 3,500 seats across 1.4 lakh sq. ft., spread across three strategic locations: two in Baner and one in Viman Nagar. The move strengthens the company’s position in Pune’s fast-growing managed office and flex space segment, driven by strong enterprise demand and hybrid workspace adoption.

Strong Enterprise Demand Driving Growth

Urban Vault has taken up 42,000 sq. ft. at Phoenix Fountainhead, Viman Nagar, adding 1,200 seats in a high-demand commercial zone. The new center has already onboarded enterprise clients such as Flexisales and Premier Energies, highlighting the increasing traction among corporates seeking flexible, high-quality managed spaces.

In Baner, the company has added another 50,000 sq. ft. center at VJ Indiworks, Baner Central, offering 1,300 seats designed for both startups and established firms. The workspace features collaborative zones, premium meeting rooms, and customizable private suites to accommodate diverse team needs.

Baner and Viman Nagar Emerge as Flex Space Hubs

Baner and Viman Nagar have emerged as Pune’s top-performing micro-markets for managed office operators, owing to robust infrastructure, IT presence, and proximity to residential catchments.
Urban Vault’s new centers are positioned to cater to mid-size enterprises, IT firms, and startups seeking plug-and-play, cost-efficient work environments with premium amenities.

The company’s Pune workspaces are priced between ₹9,000–₹10,000 per seat, balancing affordability with Grade-A quality.

CEO Speaks: “Pune Is Among India’s Most Resilient Office Markets”

Commenting on the expansion, Amal Mishra, CEO of Urban Vault, said:

“Pune continues to be one of India’s most dynamic and resilient office markets, driven by a strong base of IT, manufacturing, and startup ecosystems. Our expansion at Baner Central and Phoenix Fountainhead reinforces our commitment to providing flexible, high-quality workspaces that cater to the evolving needs of modern enterprises.”

He added that Urban Vault aims to deepen its presence in key business hubs and strengthen partnerships with enterprise clients seeking scalability, efficiency, and flexibility.

National Expansion and Strong Financials

With this launch, Urban Vault’s national portfolio has expanded to 2.6 million sq. ft., managing over 45,000 seats across Bengaluru, Pune, Gurgaon, and other cities.

The company reported a ₹120 crore turnover in FY25, marking over 70% year-on-year growth and an 18% profit after tax (PAT), underscoring its strong financial position and operational scale.

Industry Context

Pune’s managed office space market has witnessed rapid growth post-pandemic, led by demand from enterprises seeking flexibility, managed services, and scalability without capex commitments.
Urban Vault’s latest expansion aligns with this trend, positioning the firm as a key player in Pune’s premium workspace segment alongside operators such as WeWork, Smartworks, and Tablespace.

Also Read: Managed Co-Working Player Urban Vault to Add 10,000 Seats in Bengaluru within This Quarter

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The policy, approved by the state cabinet on September 30, 2025, and notified today, replaces earlier frameworks from 2023 and 2024. It offers a suite of fiscal and non-fiscal incentives to lure multinational corporations, emphasizing talent development, infrastructure upgrades, and ease of doing business. As GCCs—offshore units of global firms for IT, finance, and analytics—continue to proliferate, experts predict a surge in office space leasing, potentially adding 50-60 million sq ft of demand in the next five years.

GCC Boom: From 1,900 to 30,000 Centres by 2047

GCCs have emerged as a cornerstone of India’s economic resurgence, with the country hosting over 1,900 such centres in 2025—up from 1,200 in 2021—and employing nearly 1.9 million professionals. Maharashtra, already a leader with clusters in Mumbai, Pune, and Nagpur, is leveraging its 28% share of global STEM talent and 23% of worldwide software engineering capacity to accelerate this growth.

• Key Targets: By 2030, the state aims for 6,500 GCCs; by 2047, over 30,000, focusing on high-value areas like engineering R&D (ER&D), which has grown 1.3 times faster than overall GCCs.
• Global Edge: Incentives target AI, machine learning, and semiconductors, positioning Maharashtra as a hub for Fortune 500 firms seeking cost-effective innovation ecosystems.
• Talent Focus: Programs for upskilling in STEM and digital technologies, addressing the need for specialized manpower in urban and rural areas.

The policy’s emphasis on inclusive development—spanning urban Mumbai to semi-urban Nagpur—promises to decentralize growth, reducing congestion in Tier-1 cities and fostering equitable prosperity.

Incentives Galore: Fiscal Boosts to Draw Multinationals

To make Maharashtra irresistible, the policy introduces tailored incentives for eligible GCC units, valid for five years or until a new framework is announced.

• Financial Perks: Capital subsidies up to 20% on investments, GST reimbursements, and electricity duty exemptions for five years; interest subsidies on loans for infrastructure.
• Non-Financial Support: Single-window clearances, dedicated GCC parks with world-class amenities, and stamp duty waivers (50-100%) on leases in IT parks.
• Budget Allocation: ₹2,960 crore for 2025-30 and ₹8,472 crore for 2031-40, with ₹12 crore earmarked for FY 2025-26. A separate audit account ensures transparency.

These measures build on Maharashtra’s robust digital infrastructure and low-cost operations, aiming to capture a larger slice of the global GCC pie, currently dominated by Bengaluru and Hyderabad.

Real Estate Revolution: Office Demand to Skyrocket in Emerging Hubs

The policy’s ripple effects on real estate are profound, as GCCs account for nearly 40% of India’s annual office leasing. With GCC-led transactions exceeding 50 million sq ft in the first nine months of 2025—an 8% YoY rise—the new framework is expected to fuel a commercial boom.

• Demand Surge: Projected 50-60 million sq ft of fresh office absorption by 2030, driven by expansions in ER&D and AI centres, per industry estimates from Brookfield India Real Estate Trust.
• Decentralization Benefits: Shifting focus to Thane, Navi Mumbai, and Nagpur will ease pressure on Mumbai-Pune (where rising costs and infrastructure bottlenecks have deterred growth), stabilizing rental rates and unlocking greenfield developments.
• Investment Catalyst: REITs and developers anticipate ₹10,000-15,000 crore in ancillary investments for GCC-specific parks, including flexible co-working spaces and sustainable builds.
• Expert View: “This policy will recalibrate Maharashtra’s economic engine, unlocking talent potential and higher economic resilience through specialized clusters,” says Alok Aggarwal, MD & CEO, Brookfield India Real Estate Trust.

By promoting Grade-A office spaces with AI-ready infrastructure, the policy not only boosts property values but also spurs ancillary sectors like hospitality and logistics.

Path Forward: Implementation and Broader Vision

The government has directed related departments to issue supporting orders swiftly, including updates to investment rules and development control regulations. English translations will clarify Marathi provisions, with the government retaining amendment rights.

This initiative aligns with national goals, enhancing Maharashtra’s role in India’s $30 trillion economy by 2047. As GCCs evolve from cost centres to innovation hubs, the policy could add 4 lakh jobs, mostly in high-skill domains, while ensuring sustainable urban growth.

Also Read: Mumbai Emerges as India’s BFSI GCC Powerhouse Amid Record Leasing Surge

The post Maharashtra’s GCC Policy 2025: Attracting 400,000 Jobs and ₹50,600 Crore Investments, Set to Surge Commercial Real Estate Demand appeared first on Square Feat India.

IT Boom + Manufacturing = Double Engines of Growth

Pune is now India’s third-largest software export hub after Bengaluru and Hyderabad. At the same time, its traditional strength in manufacturing, spread across MIDC industrial clusters, has not slowed down. This combination has given Pune a unique balance—where IT contributes 23% of the city’s GDP, while manufacturing ensures stability and jobs.

Over 360 GCCs Powering New Jobs

The city now hosts more than 360 operational Global Capability Centres, where multinational companies carry out high-value research, innovation, and technology work. Unlike other IT-heavy cities, Pune’s GCC ecosystem is diverse—

• 30% BFSI (Banking & Financial Services)
• 26% Manufacturing
• 21% Technology

This diversification shields Pune from sector-specific slowdowns and creates a steady demand for both office and residential real estate.

Population Rising 3X Faster Than India’s Average

Jobs have turned Pune into a magnet for migrants. In the past decade, the city’s population grew 33.3%, three times higher than the national average. This wave of new residents is fueling housing demand—from premium apartments in Koregaon Park and Baner to affordable homes in Pimpri Chinchwad.

Office Market on the Rise

Pune already has 89.2 million sq. ft. of Grade A office stock and commands a 13% share of India’s upcoming office pipeline till 2028. Interestingly, Pune’s office rents average ₹82.3 per sq. ft., about 14% cheaper than the national average—making it a value-for-money option for global companies.

Industrial & Warehousing Growth

The city has added 14,550 new industrial units post-COVID and registered over 9.2 lakh MSMEs in just four years, employing more than 55 lakh people. Warehousing stock has touched 66 million sq. ft., with another 55 million sq. ft. coming by 2028, showing healthy demand.

Housing: Affordable Yet Premiumizing

Home sales in Pune have more than doubled between 2019 and 2025, with developers responding by launching 2.4 times more projects. The city offers everything—from ultra-luxury residences in SB Road and Koregaon Park to affordable homes in Tathawade and Ravet.

Green & Sustainable Future

Pune is also leading in green-certified offices. 61% of current office stock is already green-certified, and 97% of upcoming projects over the next three years will carry green tags.

Infrastructure Push

Mega projects like the 83-km Ring Road, Pune Metro expansions, and proximity to the upcoming Navi Mumbai Airport are expected to further boost connectivity, making the city even more attractive for both corporates and homebuyers.

The Bottom Line

Pune is no longer just the “Oxford of the East” or a “manufacturing hub.” With IT exports doubling, GCCs booming, industries expanding, and housing demand surging—the city is fast becoming India’s most balanced growth story. For homebuyers, investors, and job-seekers alike, Pune looks set to be the place where the future lives.

Also Read: Notice of De-Registration Applications for 2 Pune Real Estate Projects

The post Pune Doubles IT Exports in 5 Years, Now India’s 3rd Software Powerhouse appeared first on Square Feat India.

India’s Office Real Estate on a Historic Trajectory

India’s office leasing market is poised to achieve a record-breaking 90+ million square feet of gross leasing in 2025, according to Cushman & Wakefield’s latest Q2 India Office Market Report. This follows an already robust performance in 2024 when gross leasing touched ~89 million square feet.

“India’s office market continues to outperform global peers, underpinned by a solid economic outlook and long-term occupier confidence,” said Anshul Jain, Chief Executive, India, SEA & APAC Tenant Representation, Cushman & Wakefield.

Quarterly and Half-Yearly Leasing Volumes

Gross leasing volume (GLV) for the first half of 2025 stood at ~42 million sq ft, reflecting consistent occupier demand. Notably, Q2 2025 clocked 21.4 MSF, a 5% quarter-on-quarter growth.

Gross Leasing Volume by City (MSF)

Demand Drivers: Technology, GCCs, and Flex Spaces

Global Capability Centres (GCCs) remain a primary engine of growth, contributing 24% of quarterly leasing and hitting their highest-ever H1 leasing volume (11.4 MSF).

“The growth is being fuelled by a convergence of trends—expansion of existing occupiers, rapid scaling of GCCs, and entry of new domestic and global firms,” noted Veera Babu, Executive Managing Director, Tenant Representation, Cushman & Wakefield.

Sectoral Contribution (H1 2025):

• IT-BPM: 32%
• BFSI: 16%
• Flex Spaces: 16%
• Engineering & Manufacturing: 13%

Net Absorption Reaches 27.8 Million Sq Ft in H1

Net absorption—a key indicator of fresh demand—stood at 13.5 MSF in Q2 2025, growing 19% year-on-year.

Net Absorption by City (MSF)

Tight Supply, Falling Vacancy Rates, Rising Rents

New completions reached 12.5 MSF in Q2 2025, a 53% increase year-on-year. However, this lagged behind net absorption, leading to a 230 basis points fall in vacancy during H1.

Pune emerged as the supply leader, delivering 8.0 MSF in H1—the highest in any half-year.

Rental trends show upward pressure in all core markets, led by Hyderabad and Mumbai, where rents rose 15–16% year-on-year.

Quick Stats Box

• H1 2025 Gross Leasing: ~42 MSF
• Forecast 2025 Leasing: 90+ MSF (record high)
• Top Demand Drivers: IT-BPM, GCCs, Flex Spaces
• Vacancy: Tightening in Bengaluru, Pune, Mumbai, Chennai
• Rents: Rising across core micro-markets

Outlook: Sustained Momentum Into H2 2025

With pre-commitments rising to 10% of leasing activity, landlords are gaining pricing power. Cushman & Wakefield expects the second half to maintain strong activity as occupiers secure quality spaces ahead of further rental escalations.

“Occupiers looking for high-quality space need to act early, especially as pre-commitments are on the rise and rentals are climbing in prime markets,” advised Veera Babu.

Also Read: Why Commercial Real Estate Investors Are Betting On Office Spaces

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India’s office real estate sector recorded its seventh consecutive quarter of declining vacancy, as tight supply and robust occupier activity drove the national average vacancy rate to 15.7% in Q1 2025, down 55 basis points (bps) from the previous quarter and 275 bps since Q2 2023, according to Cushman & Wakefield’s Q1 2025 India Office Market Report.

Limited New Completions Across Most Markets

New office space completions fell short of expectations in Q1 2025, totaling 10.7 million sq. ft. (MSF) — a drop of 13% year-on-year and 27% quarter-on-quarter, due to delays in project timelines and occupancy certifications.

New Supply by City (MSF)

86% of new supply came from just three cities: Bengaluru, Pune, and Delhi-NCR.

Vacancy at Multi-Year Lows

Despite moderate supply additions, vacancy dropped in six out of eight markets, most notably in Mumbai (down 227 bps) and Kolkata (down 140 bps).

Vacancy Rates – Q1 2025

Leasing Activity Stays Strong

Total gross leasing volume (GLV) in Q1 2025 touched 20.3 MSF, up 5% YoY and on par with the two-year average. Fresh leasing accounted for 80% of all transactions, continuing a three-quarter trend of steady expansion by occupiers.

Top Leasing Markets (GLV in MSF)

• Bengaluru: 4.86
• Mumbai: 4.31
• Pune: 3.49
• Delhi NCR: 2.75
• Hyderabad: 2.59
• Chennai: 1.97
• Kolkata: 0.26
• Ahmedabad: 0.07

Pre-commitments more than doubled quarter-on-quarter, reflecting strong future sentiment.

Net Absorption Rises Sharply

Net absorption — a key metric of market demand — hit 13.4 MSF, marking a 20% YoY rise and the third-highest quarterly figure ever.

• Delhi NCR, Mumbai, and Bengaluru accounted for 63% of this.
• Pune saw its highest-ever net absorption.
• Delhi NCR posted its strongest figure since Q4 2019.

Who’s Leasing? Sectoral Trends

The IT-BPM sector remained dominant, but Global Capability Centres (GCCs) are fast gaining ground.

Share of Gross Leasing Volume by Sector

Bengaluru led in GCC leasing with 37% share, followed by strong growth in Pune and Hyderabad.

Rents Move Up in High-Demand Markets

Demand outpaced supply in several cities, pushing up rentals:

• Mumbai saw the steepest rental rise at 10% QoQ
• Hyderabad, Ahmedabad, Delhi-NCR, and Chennai saw 2–4% QoQ growth

Expert Outlook

Anshul Jain, Chief Executive, India & SEA, said:

“India’s office market continues to build on strong fundamentals. The rise in GCC leasing, along with sustained demand and healthy supply pipelines, reflects global confidence in India’s business environment.”

Veera Babu, Executive Managing Director, added:

“Vacancy rates are now at a four-year low. With over 40 MSF of active demand, competition for premium office space will intensify, particularly in centrally located business districts.”

Looking Ahead

• Vacancy expected to tighten further amid supply lag
• Rental growth likely to sustain in high-demand micro-markets
• Strong pipeline of 40+ MSF expected to drive activity for the next 3–4 quarters

Also Read: Coworking Share in Office Real Estate at 27%

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