Pune Property Market Sees 6% Dip Amid Price Surge
Pune’s real estate market is grappling with a significant slowdown, as home sales fell by 6% in 2024, dropping to 81,090 units from 86,680 units in 2023. This decline, highlighted by data from real estate consultancy firm Anarock, mirrors the broader trends seen across India’s major metro cities. The rising prices, coupled with increasing market saturation, have posed challenges for potential homebuyers, dampening demand despite the market’s robust performance earlier in the year.
Nationally, the decline in home sales is part of a broader trend, with sales across India’s top seven cities dipping by 4%. Among these cities, Chennai and Kolkata faced the steepest declines, with sales falling by 11% and 20%, respectively. However, the Mumbai Metropolitan Region (MMR) and Bengaluru bucked the trend, experiencing slight growth, with increases of 1% and 2%, respectively. The demand for residential properties in Pune, historically a hotspot for young professionals and families, is showing signs of strain as homebuyers face escalating prices and a more saturated market.
Experts attribute Pune’s downturn to two main factors: a sharp rise in home prices and market saturation. The average home price in major Indian cities surged by 21% in 2024, further stretching the affordability limits for many buyers. While the first three quarters of the year showed strong sales, the final quarter witnessed a slowdown in inquiries due to affordability constraints, according to industry insiders. Pune, which has also seen a 28% decline in new home supply—down to 60,540 units launched in 2024 from 83,625 units in 2023—is now grappling with a significant supply-demand imbalance. The delay in construction permits has compounded the situation, leaving many potential buyers waiting for new developments.
In terms of the current market scenario, Pune’s property sector faces a challenging outlook, with reduced inquiries and the increasing gap between demand and supply pushing prices even higher. If construction activities do not gain momentum in the coming year, the market could face a severe affordability crisis in 2025. According to industry analysts, the increasing cost of construction and the lag in approvals for new projects will make it difficult for developers to meet the burgeoning demand for residential properties, which could, in turn, keep prices inflated for the foreseeable future.
Looking ahead to 2025, the real estate market in Pune, as well as across India, is expected to continue facing pressures from both rising prices and supply constraints. However, there are optimistic signs. Commercial leasing activity has increased, signalling ongoing demand for housing near employment hubs. Industry leaders are hopeful that policy interventions, such as expanding tax benefits under Section 80C and introducing measures to redefine affordable housing, will help stimulate demand. Yet, it remains clear that unless the issues surrounding construction delays and affordability are addressed, the market will struggle to regain its previous momentum.
In the context of sustainability, the shift in demand towards more affordable housing options and sustainable urban development is crucial. As Pune grapples with its real estate challenges, sustainable building practices, energy-efficient homes, and eco-friendly initiatives will be pivotal for developers and policymakers in balancing growth with environmental responsibility. With urbanization continuing at a rapid pace, cities like Pune must focus on long-term solutions to create affordable, sustainable living spaces that meet the demands of a growing population without compromising environmental integrity.
As Pune’s real estate market faces these pressures, the year 2025 may prove to be a turning point for the sector. The path forward will require a balanced approach to supply, affordability, and sustainable development to ensure that the city’s real estate market remains resilient and continues to thrive in the long term.
