Pune Housing Market Experiences 3% Decline in 2025 as Buyers Become More Selective

The Pune real estate market experienced a 3% decline in residential sales, totaling 50,881 units in 2025, with H2 sales falling by 5% to 26,552 units, according to Knight Frank India. The report attributes this slowdown to a phase of consolidation after robust growth from 2021 to 2024. Demand remains end-user driven, but homebuyers are becoming more selective amid rising prices.

On the launch front, the number of new units launched decreased by 6% in 2025 to 56,118 units, compared to the previous year. In the last six months of 2025, launches declined by 6% to 29,559 units. Developers are focusing on active corridors and proven micro-markets, avoiding broad-based expansion despite steady long-term demand visibility.

Homes priced below ₹50 lakh saw their share of sales drop sharply to 23% in H2 2025, from 32% in H2 2024. The ₹50 lakh to ₹1 crore segment emerged as the most active, accounting for 46% of sales, while the ₹1 crore to ₹2 crore segment increased its share to 24%, highlighting the growing acceptance of high-ticket properties.

Residential prices in Pune continued to rise, with average prices reaching ₹5,016 per square foot in H2 2025, a 5% year-over-year (YoY) increase. Price appreciation was supported by sustained demand in well-connected western and eastern corridors.

West Pune, which is closer to Mumbai, remained the leading demand hub, accounting for 40% of total sales in H2 2025, unchanged from the previous year. Locations such as Baner, Wakad, and Hinjewadi continued to attract buyers due to employment access, social infrastructure, and a wide range of housing options. The North micro-market accounted for 23% of sales, while East Pune contributed 22%, reflecting steady demand in Viman Nagar, Kharadi, and Hadapsar.

West Pune also dominated in terms of launches, accounting for 43% of new supply in H2 2025, up from 39% in H2 2024. East Pune maintained a stable 25% share of launches, while North Pune saw a moderation in supply additions. The alignment between launch and sales patterns reflects a disciplined developer response to demand signals.

Overall unsold inventory rose to 51,653 units in 2025, up 11% YoY, while Quarters-to-Sell (QTS) stood at four quarters, within a comfortable range. The average age of unsold inventory was 11.7 quarters, indicating that a significant portion of stock remains relatively fresh.

Pune’s residential market in H2 2025 demonstrated a phase of measured consolidation rather than any signs of strain. Although sales volumes eased and unsold inventory increased, price levels remained steady, underscoring the underlying strength of demand. Homebuyer interest remained anchored in micro-markets with strong connectivity and proximity to major employment hubs. Supported by affordable pricing compared to larger metropolitan markets and a predominantly end-user-driven demand profile, the city remains well-positioned for stable absorption as new supply comes on stream.

Looking ahead, Pune’s economic prospects remain bright, with sustained inflows of GCCs and technology-led enterprises strengthening employment generation and income visibility. This is expected to keep homebuyer sentiment positive and reinforce aspirational housing demand, providing a solid foundation for the residential market over the medium term.