Research &

Forecast Report
Pune | Office
April 2015

IT / ITeS driving
the city office real
estate
Renewals and expansions by IT / ITeS companies continued
to drive the Pune office market in 1Q 2015. However, the
citys office absorption was recorded at approximately
0.89 million sq ft, which is 40% lower than the previous
quarters absorption. Nagar Road and Airport Road /
Pune Station continued to remain as the most preferred
locations by major occupants, each with about 24% of the
total absorption, followed by Hinjewadi and Hadapsar /
Fursungi, each with about 16%.
Occupiers from the IT / ITeS sector were the primary
contributors to this demand, taking up more than 90% of
the total absorption. This was followed by other sectors like
Logistics, Pharma and Manufacturing, accounting for over
7% of the total absorption. A number of large-floor plate
deals were concluded this quarter, like the 0.13 million sq
ft lease by Vodafone India in Business @ Mantri located
on Nagar Road. In addition, Amdocs took 0.08 million sq
ft in Magarpatta Cybercity Tower 3, and more than 0.05
million sq ft each was taken by Rockwell Automation and
Access Health Services in Embassy - Mississippi located at
Hinjewadi.
About 4 million sq ft was available for lease in Pune market,
of which 24% was located on the Airport Road / Pune
Station, 18% Nagar Road and 16% in Hinjewadi. The city
witnessed limited new supply, and only about 0.64 million
sq ft of Grade A supply was added to the citys Grade A
inventory. Projects that contributed to this new supply were
Marvel Alaina and Marvel Edge, both by Marvel Group, at
Koregaon Park and Viman Nagar, respectively.

City Office Barometer

INDICATORS

2Q 2015 F

Vacancy
Absorption
Construction
Rental Value
Capital Value

Rental Values
MICRO MARKETS

RENTAL
VALUE*

% CHANGE
QoQ
YoY

Baner

45 - 55

0%

0%

Bund Garden

50 - 65

0%

0%

Airport road/pune
station

45 - 75

0%

7%

Aundh

45 - 60

0%

0%

Senapati Bapat
Road

55 - 85

0%

0%

Bavdhan

35 - 45

0%

0%

Kalyani Nagar

45 - 60

0%

0%

Nagar Road

40 - 60

0%

0%

Hinjewadi

34 - 45

3%

3%

Hadapsar/Fursungi

38 - 65

0%

7%

Kharadi

34 - 65

2%

2%

*Indicative Grade A rents in INR per SF per month

Despite low absorption, developers like Vascon launched

1Q 2015

Research & Forecast Report | April 2015 | Colliers International

1.80
1.50
1.20
0.90
0.60

1Q 2015

4Q 2014

3Q 2014

2Q 2014

1Q 2014

4Q 2013

3Q 2013

Average Rental And Capital Value Trend

8,000

Forecast

70

7,000

60

6,000

1Q 2017F

1,000

1Q 2016F

10
1Q 2015

2,000

1Q 2014

3,000

20

1Q 2013

30

1Q 2012

4,000

1Q 2011

5,000

1Q 2010

50
40

Capital Values INR Per Sq.ft.

80

1Q 2008

Rental Values INR Per Sq Ft Per Month

The office market of Pune will continue to remain upbeat

due to strong fundamentals. IT/ITeS will remain as the
key occupier in the coming quarters of 2015. Vacancy is
expected to decline due to lesser amount of new supply and
increase in absorption. Rents are expected to inch up in
medium term.

2Q 2013

0.00

Colliers View

1Q 2013

0.30

1Q 2009

The rents for prime office property remained stable across

all major micro markets, except in Hinjewadi and Kharadi,
where rents rose by 23% QoQ. Capital values remained
on the same level compared to that of the previous quarter
across Pune.

Quarter Wise Absorption

Million Sq.ft

Platinum Square (0.04 million sq ft) at Viman Nagar, Nyati

launched Nyati Emporius (0.03 million sq ft) at Baner
and MSR Group launched a 0.07 million sq ft project
at Sangamwadi. These projects are currently under
construction and are expected to be completed in 2016.

Top 5 Transactions of the Quarter

CLIENT

BUILDING NAME

AREA (SF)

LOCATION

LEASE / SALE

Vodafone India

Business @ Mantri

133,379

Nagar Road

Lease

Amdocs

Magarpatta Cybercity
Tower-3

88,000

Hadapsar

Lease

Rockwell Automation

Embassy - Mississippi

51,516

Hinjewadi

Lease

Access Health Services

Embassy - Mississippi

51,116

Hinjewadi

Lease

HCL

Business Bay

46,000

Yerwada

Lease

AREA (SF)

LOCATION

POSSESSION

Key Under Construction Projects

BUILDING NAME

DEVELOPER

SP Infocity Building 5

Shapoorji Pallonji Group

800,000

Phursungi

2015

Commerzone Building 8

K Raheja Corp

420,000

Yerwada

2015

Acendas Phase II

Acendas

615,000

Hinjewadi

2015

Notes:
1. Office Market: The prime office sub-markets of Pune include CBD (Deccan Gymkhana, Bund Garden Road, Senapati Bapat Road & Camp), O CBD (Aundh, Airport Road and
Kalyani Nagar) and the eastern corridor, along with Nagar Road and Kharadi, which have emerged as a preferred location for financial and IT/ITES companies.
2. Rents/Capital Value: Market average of indicative asking price for Grade A office space.
3. Available Supply: Total Grade A office space being marketed for sale or lease in surveyed quarter.
4. City Barometer: Represents increase, decrease or stable scenario; as compared to previous quarter.
5. All the figures in the report is based on market information as on 25th March 2015.

Research & Forecast Report | April 2015 | Colliers International

Primary Authors:

502
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6 continents
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199
EMEA: 108

Surabhi Arora
Associate Director | Research
+91 124 456 7500
surabhi.arora@colliers.com
Sachin Sharma
Manager | Research
Amit Oberoi I National Director
Valuation & Advisory Services & Research
For Oce Services:
Mumbai: George Mckay I South Asia Director
george.mckay@colliers.com
Delhi / NCR: Vikas Kalia | National Director
vikas.kalia@colliers.com

$2.3

billion in
annual revenue

1.7

billion square feet

under management

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professionals

About Colliers International

colliers.com

2015

Bengaluru: Goutam Chakraborty I Director

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