Pune & PCMC Real Estate Market Trends for 2025 and 2026

The Pune residential real estate market in 2025 presents a mixed picture, with strong fundamentals underlying significant stress. The city transitioned from a period of rapid growth to a more stable, selective market, where affordability and changing buyer demographics became key factors.

At first glance, 2025 saw a robust number of property transactions. Pune recorded its best property registration run in four years, with over 1.70 lakh transactions from January to November, slightly higher than the same period in 2024. The holiday season was particularly critical, with registrations jumping by over 22% in September compared to the previous year. By November, the city had seen over 14,200 registrations.

However, despite the overall strength in registrations, there was a significant decline in actual unit sales. According to property consultants ANAROCK, Pune’s housing sales for the entire year of 2025 fell by 20% from 81,090 units in 2024 to 65,135 units. This was the second-largest drop among major cities, following Mumbai’s 18% decline. The disparity between registration volumes and unit sales indicates a shift towards luxury segments, with higher-value transactions dominating the market. Affordability concerns led many buyers in the affordable housing segment to delay their purchases or exit the market entirely.

Central Pune, encompassing areas like PMC, PCMC, and Haveli Taluka, remained the city’s real estate engine, contributing over 60% of all housing transactions in 2025. This is largely due to the corridor’s proximity to IT job hubs and well-established social infrastructure. Pimpri Chinchwad Municipal Corporation (PCMC) particularly benefited from favorable micro-market conditions. Property prices in PCMC rose by over 10% in Q1 2025 compared to Q1 2024, slightly outpacing the 8.7% growth in Pune Municipal Corporation (PMC), driven by new corridors in Moshi, Punawale, and Wakad.

Rental yields in PCMC remained strong, with Ravet currently offering the highest annual returns of 4.3% among emerging zones, significantly higher than Mumbai’s 2.5% benchmark. This rental performance continues to attract yield-focused investors who see PCMC as an excellent option for risk-adjusted returns. Properties in Ravet and Nigdi are currently priced between Rs. 6,500 and Rs. 9,000 per square foot, making them attractive for first-time and mid-range buyers who cannot afford more expensive western corridors like Baner and Kharadi.

However, 2025 also saw a significant decline in affordability in Pune. For instance, a 60 lakh flat that cost 40 lakh in 2020 now requires an additional Rs. 12,000–18,000 per month in EMI, even with minor interest rate cuts. Sales in the under-Rs. 50 lakh range plummeted, with some areas experiencing drops of 5–30% year-on-year. The problem of unsold inventory worsened, with over 75,000 unsold units by mid-2025, and the inventory overhang extending to more than 10 months—the longest since 2020. By the end of the year, there were over 77,800 unsold units in the primary market. This excess supply has tied up developer capital and poses a risk to pricing in 2026.

Sectoral and geopolitical challenges further impacted the market in 2025. While India’s economy was relatively insulated from global commodity shocks and financial instability, the technology industry, a primary source of demand in Pune, faced significant layoffs and hiring freezes, particularly in the second and third quarters. Geopolitical tensions disrupted supply chains and investor sentiment, affecting NRI investment flows. Historically, NRI demand has played a crucial role in supporting Pune’s real estate market during downturns.

The combined effect of these challenges led to increased hesitation among homebuyers in the middle segment, where most developers had concentrated their supply. Luxury segments performed well, but they account for less than 20% of Pune’s annual housing sales. Therefore, 80% of the market requires stronger demand signals in 2026.

Looking ahead to 2026, leading real estate consultants expect the housing market to stabilize rather than recover strongly. Prices are projected to rise at a moderate rate of 5–10% per year, which is healthy by historical inflation standards. However, this means that in most areas, investors will not see the 10–15% appreciation witnessed from 2020 to 2024. This stabilization is not necessarily negative, as it will help improve affordability as people’s salaries and investment growth catch up with housing prices, a long-overdue adjustment.

However, slower price increases may become the norm in 2026 and beyond. Infrastructure delivery will be a significant differentiator for areas and projects. For example, the delayed completion of the Pune Metro Phase 1, expected in mid-to-late 2026, could lead to a 15–20% price increase in 500-meter corridors. The Ring Road will open up areas on the outskirts, with impacted areas seeing price appreciation of 20–25% as redevelopment nodes form at key intersections. The Purandar Airport project will also transform the southern corridor of Pune.

As of the end of 2025, affordability remains a significant issue in Pune. The market’s shift towards mid-premium and luxury housing segments is driving many buyers to the outskirts or off the market. Developers must adjust their supply mix to ensure that ‘price discovery’ remains rational and aligned with actual demand.