DBS Bank India Finances K Raheja Corp’s Pune Tower with ₹520 Cr

DBS Bank India has approved a substantial ₹520 crore construction finance facility for K Raheja Corp, targeting a new Grade A commercial tower in Pune. This funding specifically supports the development of a 1.1 million square feet project in Balewadi, a rapidly expanding business district.

The initiative directly addresses the escalating demand for premium, modern office spaces within Pune, as highlighted by both entities in a joint statement. Santanu Mitra, Managing Director and Country Head of Corporate Banking (Large and Midcap) at DBS Bank India, emphasized the bank’s commitment to sustainable development and environmentally responsible workplaces.

Pune’s Office Market Boom

Pune’s office market demonstrated remarkable growth in the first half of 2026 (H1 2026), reaching an absorption volume of 6.4 million sq ft, according to Savills India. This figure represents a significant 56 percent year-on-year increase, marking Pune’s highest half-yearly leasing volume in a decade.

• Finance facility: ₹520 crore
• Tower size: 1.1 million sq ft
• Pune H1 2026 office absorption: 6.4 msf
• Year-on-year absorption increase: 56 percent
• Market position: India’s second-largest office market, trailing only Bengaluru

The city has solidified its position as India’s second-largest office market, a clear indicator of robust commercial expansion. Vinod Rohira, Managing Director and CEO of K Raheja Corp, noted Balewadi’s emergence as a central hub for this growth.

Driving Demand Factors

The primary drivers behind Pune’s accelerated leasing activity showcase a shift in market dynamics. Information technology and business process management (IT-BPM) continue to lead, alongside the growing influence of flexible workspaces.

• Information technology and business process management (IT-BPM)
• Flexible workspaces
• Engineering and manufacturing sectors (replacing BFSI among top three)

As global capability centres (GCCs) and other expanding enterprises seek advanced ecosystems, Pune’s new developments aim to attract top talent and support business growth. This strategic financing from DBS Bank India directly fuels that trajectory, aligning with the city’s evolving commercial landscape.