US-Based CA India Technologies Secures 5-Year Lease Renewal in Pune’s Kharadi for ₹12 Crore

US-based business software company CA (India) Technologies Private Limited has renewed its lease for  office space in Pune's Kharadi area, a rapidly developing IT hub. The lease agreement, which spans five years, is for a 1.08 lakh square feet office space located in Eon Free Zone, a property owned by Eon Kharadi Infrastructure Pvt Ltd, a subsidiary of Panchshil Realty. As per the property registration documents obtained by CRE Matrix, the lease will incur an annual rent of over ₹12 crore.

Lease Terms and Rent Structure

The office space leased by CA India Technologies includes the ground, second, and third floors of the building. The monthly rent for this office space is initially set at ₹98 per square foot, translating to approximately ₹1.07 crore per month for the first year of the lease. This figure will increase incrementally over the course of the lease.

From November 2025, the rent will increase to ₹1.12 crore per month. The rent will continue to rise steadily, reaching ₹1.18 crore per month from 2026 to 2027, ₹1.24 crore between 2027 and 2028, and ₹1.30 crore from 2028 to 2029. The lease includes a three-year lock-in period, providing security for both the tenant and the property owner during the early years of the lease term.

The company has paid a security deposit of ₹8.46 crore and a stamp duty of ₹49.57 lakh as part of the registration process. While the space leased is smaller than the 1.83 lakh square feet that the company leased in the same building from 2022 to 2024, the price per square foot remains premium, reflecting the high demand for office spaces in this IT-centric locality.

Features of the Kharadi Office Property

The commercial property in Kharadi, situated in the Eon Free Zone, is a sought-after location within Pune’s bustling IT and business district. The property boasts 308 parking spaces, with 108 designated for four-wheelers and 200 for two-wheelers, catering to the needs of the employees who work in the area.

This office space is part of the growing trend of businesses securing Grade A office spaces in key IT hubs like Kharadi. These spaces are often equipped with modern amenities and are located close to important transport links, making them desirable for multinational companies and their employees.

Pune’s Commercial Real Estate Market

Pune’s commercial real estate market has remained resilient, particularly in the Kharadi area, which has become one of the most preferred locations for IT companies and businesses in recent years. The city has attracted several global corporations, Indian firms, and start-ups due to its strategic location, availability of skilled talent, and the affordability of commercial properties compared to other metropolitan cities like Mumbai and Bengaluru.

Kharadi’s commercial market has been buoyed by its well-developed infrastructure, including modern office complexes, easy connectivity to other parts of the city, and proximity to residential areas, making it a prime location for businesses to set up shop. Local brokers have reported that rents in the area typically range around ₹90 per square foot, although premium properties like the Eon Free Zone command higher rates, reflecting their superior amenities and location.

The lease renewal by CA India Technologies is a testament to the ongoing demand for office spaces in Kharadi, underscoring the area's importance as an IT and business hub. Businesses in Pune, particularly those in the IT sector, continue to expand, further driving demand for high-quality office spaces in strategic locations.

Other Significant Transactions in Pune

Pune has seen several other major commercial real estate transactions recently, highlighting the city’s growing commercial appeal. For instance, in September 2024, Mindspace Business Parks REIT renewed a lease for 3.75 lakh square feet of office space in Commerzone, located in Pune’s Yerwada area, for ₹3.03 crore per month. This deal further underscores the strong demand for office spaces in the city.

In another notable deal earlier this year, Prestige Exora Business Parks, a subsidiary of Bengaluru-based real estate developer Prestige Estates, acquired a 4.57-acre land parcel in Pune for ₹200 crore. This reflects the increasing investment in Pune’s commercial real estate sector, with developers recognizing the city’s growth potential and robust demand for Grade A office spaces.

These recent transactions align with the growing trend of office market transactions in Pune. The city continues to attract both domestic and international companies, with many opting for longer lease terms and premium office spaces in established commercial hubs like Kharadi.

Pune as a Preferred Location for Businesses

Pune’s commercial real estate market remains attractive due to its strong economic fundamentals. The city offers businesses a wide range of benefits, from its strategic location to its growing infrastructure, making it an ideal place for companies to establish or expand their operations. The availability of skilled labor, especially in sectors like IT, manufacturing, and education, further enhances Pune’s attractiveness as a business destination.

The city’s affordability compared to other metropolitan areas, coupled with the presence of modern office complexes and connectivity to major cities, ensures that businesses can operate efficiently while keeping costs manageable. Moreover, Pune’s proximity to Mumbai, India’s commercial capital, makes it an important location for companies seeking to establish a presence in Western India.