DBS India Sanctions 520 Crore Construction Finance to K Raheja

DBS Bank India has sanctioned ₹520 crore in construction finance to a K Raheja Corp SPV for a 1.1 million sq ft Grade A office tower in Pune’s Balewadi. The project comes amid strong office leasing demand in the city.

DBS Bank India has sanctioned a ₹520 crore construction finance facility to a special purpose vehicle (SPV) of Mumbai-based real estate developer K Raheja Corp for the development of a commercial office project in Pune. The financing will support the construction of a 1.1 million sq ft Grade A office tower in Balewadi, one of the city’s rapidly expanding business districts.

The project is designed to cater to growing demand for high-quality and future-ready workplaces in Pune. According to DBS Bank India and K Raheja Corp, the development will focus on providing commercial space suited to businesses seeking modern office infrastructure and environmentally responsible workplaces.

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The financing comes as Pune continues to record strong office leasing activity. According to data from property consultancy Savills India, the city recorded office space absorption of 6.4 million sq ft in the first half of 2026, representing a 56% increase from the same period last year. Pune also recorded its highest half-yearly leasing volume in the past decade.

Pune has emerged as India’s second-largest office market after Bengaluru, with demand supported by several sectors. Information technology and business process management (IT-BPM), flexible workspaces, engineering and manufacturing were among the leading contributors to leasing activity during the first half of the year.

The growth of global capability centres (GCCs) and expansion-stage companies is also contributing to demand for larger and better-equipped office facilities. These businesses are increasingly seeking locations that can support workforce expansion, attract skilled employees and provide modern workplace infrastructure.

DBS Bank India said the financing reflects its focus on supporting commercial developments aligned with changing business requirements and sustainable growth. The bank expects demand for high-quality commercial spaces to remain supported by companies seeking efficient and environmentally responsible workplaces.

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K Raheja Corp Managing Director and CEO Vinod Rohira said Balewadi is becoming an important centre of Pune’s commercial growth. The developer expects the project to benefit from the increasing presence of businesses and GCCs in the city.

The ₹520 crore facility highlights continued lender confidence in Pune’s commercial real estate market. With office absorption rising and demand broadening across technology, manufacturing and flexible workspace segments, new Grade A developments are expected to play an important role in meeting the city’s expanding commercial requirements.