Mumbai: Citicorp Services India Pvt Ltd has finalized one of the largest commercial real estate leasing deals in Pune by securing 7.7 lakh sq. ft. of office space in Panchshil Business Hub, Kharadi. The agreement, signed with Panchshil Business Spaces Pvt Ltd, is for a 10-year lease period with a total rental value of ₹1,096 crore, as per property registration documents accessed by CRE Matrix. This lease marks a significant milestone in Pune’s commercial real estate sector, reinforcing the city’s growing appeal for large multinational corporations.
The office space leased by Citicorp is spread across ten floors, specifically from levels 7 to 16, and the transaction has been executed through three separate lease agreements. The first of these covers 3.07 lakh sq. ft. on the 13th, 14th, 15th, and 16th floors, with a lease term of 10 years and an initial monthly rent of ₹2.70 crore. The second agreement includes 2.34 lakh sq. ft. on the 10th, 11th, and 12th floors, leased for 9.5 years with a starting monthly rent of ₹2.06 crore. The third lease covers 2.29 lakh sq. ft. on the 7th, 8th, and 9th floors, with a 9-year lease term and an initial monthly rent of ₹2.01 crore. All three agreements include a 15% rent escalation clause every 36 months, ensuring periodic increases in the rental amount.
The lease registration date for these agreements is March 12, 2024, while the commencement dates vary between April 1, 2025, and April 1, 2026, as the space will be occupied in phases. Along with the lease, Citicorp has secured 770 car parking spaces and 1,185 two-wheeler parking spaces, making it a comprehensive corporate arrangement. The company has also paid a security deposit of ₹20.35 crore. The lock-in period varies between four to five years, meaning that Citicorp will be obligated to occupy the space for at least that duration before having the option to exit the agreement.
Abhishek Kiran Gupta, CEO & Co-founder of CRE Matrix, commented on the deal, stating that Citicorp’s decision to lease such a vast space at ₹88 per sq. ft. highlights the strength of Pune’s commercial real estate market. He pointed out that this transaction further solidifies Pune’s position as a prime destination for corporate expansion, particularly given the growing trend of large office transactions. He also noted that the number of leasing deals for office spaces exceeding 100,000 sq. ft. has risen by 41%, especially in Bengaluru and Pune. This 10-year lease agreement, valued at over ₹1,000 crore, demonstrates the confidence that major corporations have in Pune as a long-term business hub.
The commercial office market in Pune has seen a surge in high-value leasing transactions in recent months. A notable example is Awfis, a co-working space provider, which leased 2.7 lakh sq. ft. in Kharadi for an annual rent of ₹15.77 crore on a five-year lease term. This transaction was registered in December 2024, with the lease set to commence from January 1, 2025. Another major deal was recorded in September 2024, when Nvidia Graphics Private Limited renewed its 3.75 lakh sq. ft. lease at Commerzone, Yerwada, Pune, at a monthly rent of ₹3.03 crore.
Mumbai, which remains one of India’s largest commercial real estate hubs, has also witnessed significant leasing activity. One of the most substantial transactions took place in August 2024, when Morgan Stanley leased 1 million sq. ft. of office space in Oberoi Commerze III, Goregaon East, Mumbai, for a nine-year period. The lease, which was signed by Morgan Stanley Advantage Services Private Limited, spans 16 floors in the Oberoi Garden City complex, with a total chargeable area of 10.01 lakh sq. ft. and an initial monthly rental of ₹15.96 crore.
The Citicorp lease in Pune is a testament to the city’s growing importance as a corporate hub. With the increasing demand for premium office spaces and major firms committing to long-term leases, Pune is establishing itself as a key player in India’s commercial real estate market. The deal further strengthens the city’s position as an attractive destination for multinational corporations, IT companies, and financial institutions looking to expand their presence in India.
Queries regarding the lease agreement have been sent to Panchshil Business Spaces Pvt Ltd and Citicorp Services India Pvt Ltd. The report will be updated if and when a response is received.
