Pune Real Estate Market Sluggish as Demand Softens: Report
The Pune real estate market is experiencing a slowdown due to 'sticker shock' and rising home prices. The Gera Pune Residential Realty Report highlights a 4.73% decrease in new project prices over the past year.
Pune Real EstateGera DevelopmentsProperty PricesSticker ShockMarket ConsolidationReal Estate NewsJul 12, 2025
The Gera Pune Residential Realty Report states that while prices have risen by a moderate 7.31% year-on-year, this increase has significantly added to the total ticket sizes. Over the past five years, prices have climbed by 40%, and average home sizes have increased by 25%, resulting in an overall 76% increase in the average sticker price. This has led to affordability challenges for buyers in the Budget and Upper-mid segments, while affluent buyers are increasingly gravitating towards larger, more comfortable homes.
Rohit Gera, Managing Director of Gera Developments Private Limited, explained the market shifts at a recent press conference in the city. He said, “We are witnessing the market respond to a steep escalation in total ticket size, what we’re calling Sticker Shock. Even though interest rates have come down over the last 6 months, affordability remains a concern as the total outgo for buyers has increased by 76 per cent over five years. The steep increase in sticker price has led to sticker shock and has caused people to slow down their purchase decision, resulting in the demand softening.”
Developers are responding cautiously to these changes. They are slowing new launches and recalibrating configurations. Gera added, “I expect smaller home sizes to return to the market, making homes more affordable not through pricing corrections but by offering compact yet efficient layouts. For buyers, this is a critical time – choosing projects by developers with strong financial stability is more important than ever.”
As per the report, prices of new projects launched have decreased by 4.73% over the last year, although the overall market is still on an uptrend. East Pune recorded the highest price appreciation across the city, marking a 9.6% growth, followed by West Pune with a 6.8% appreciation.
Currently, Pune has 2,605 residential projects under development, up by 6.7% since June 2024. However, the market is consolidating, with small projects (less than 100 units) falling by 39% since 2018, while large projects (greater than 500 units) have surged by 70%.
Areas such as Hinjewadi, connected by the new Metro corridors, have seen stable pricing and increased traction from affordability-focused buyers. The report adds, “Pune’s real estate market is entering a phase of strategic recalibration.”
This shift in the market dynamics is expected to influence both buyers and developers, as they navigate the new landscape of real estate in Pune.
Frequently Asked Questions
What is 'sticker shock' in the context of the Pune real estate market?
Sticker shock refers to the cumulative effect of rising prices and increasing home sizes, leading to a significant increase in the total ticket size for buyers. This has caused people to slow down their purchase decisions, resulting in softened demand.
How have home prices in Pune changed over the past five years?
Over the past five years, home prices in Pune have climbed by 40%, and average home sizes have increased by 25%, resulting in an overall 76% increase in the average sticker price.
What areas in Pune have seen the highest price appreciation?
East Pune has recorded the highest price appreciation, marking a 9.6% growth, followed by West Pune with a 6.8% appreciation.
How are developers responding to the market changes?
Developers are responding cautiously by slowing new launches and recalibrating configurations. They are expected to offer smaller, more compact and efficient home layouts to make properties more affordable.
What is the current trend in the number of residential projects in Pune?
Currently, Pune has 2,605 residential projects under development, up by 6.7% since June 2024. However, the market is consolidating, with small projects (less than 100 units) falling by 39% since 2018, while large projects (greater than 500 units) have surged by 70%.
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