Pune Real Estate Market under Scrutiny: 5 Key Insights
Pune's real estate market is facing significant changes due to a recent land scam, rising prices, and infrastructure developments. Here are five key things to know about the city's property landscape.
Pune Real EstateLuxury HousingInfrastructure DevelopmentLand ScamProperty PricesReal Estate MumbaiNov 08, 2025
Pune’s residential market is witnessing a significant shift towards premium and luxury housing. Buyers are increasingly seeking larger, more luxurious properties, but this trend has led to what one report calls ‘sticker shock,’ particularly among buyers looking for smaller apartments. As prices climb, affordability is becoming a major issue, creating higher entry barriers for first-time buyers.
According to Knight Frank India’s latest report, Q3 2025, Residential and Office (July-September 2025), Pune’s residential sales volume in Q3 2025 was 12,118 units, marking an 8% YoY decline compared to the base period. Despite this moderation in sales volume, the city's residential prices saw a steady 5% YoY increase. This trend is driven by a continued preference for larger and more premium homes, reflecting the overall trend of premiumisation in the market.
K.P. Vilas, National Director - Occupier Strategy & Solutions, Industrial & Logistics, Capital Markets, and Branch Head (Pune), Knight Frank India, noted that “Pune’s residential market is undergoing a phase of recalibration after the strong growth seen in 2024. Premium housing continues to drive momentum, and with supportive policies and infrastructure upgrades, the city’s residential sector is poised for steady performance in the medium term.”
Buyers seeking affordable options are increasingly being priced out of Pune’s real estate market, according to a report by Gera Developments. The report highlights that rising prices have triggered widespread ‘sticker shock,’ particularly for smaller flats. This sharp increase in listed prices has discouraged many potential buyers in the mass and upper-mid segments, leading to slower purchase decisions and weaker sales volumes. As a result, developers are now being compelled to recalibrate their pricing and product strategies.
Rohit Gera, MD, Gera Developments, was quoted as saying, “It’s like going to buy shampoo and seeing a ₹1,200 price tag, you just walk away.”
Rising incomes and an expanding base of affluent buyers, including IT professionals, entrepreneurs, and business owners, are fueling demand for premium homes with superior amenities in prime locations. With limited land availability in central areas such as Koregaon Park, Kalyani Nagar, and Boat Club Road, developers are increasingly turning to high-value, low-density luxury projects.
In these established neighbourhoods, where new greenfield development is scarce, many developers are redeveloping old bungalows, society plots, and smaller apartment buildings into exclusive, low-rise residences that cater to affluent buyers seeking space and a prestigious address. A strong presence of multinational companies in the IT, automotive, and education sectors has further bolstered demand from senior professionals and NRIs for such luxury homes.
The Pune real estate market has been in the spotlight after a sale deed for 40 acres of government land in the upscale Mundhwa area to Amadea Enterprises came under scrutiny for a lack of required clearances. The deal, involving the alleged illegal sale of government land, has triggered a political storm in Maharashtra, centring on Deputy Chief Minister Ajit Pawar’s son, Parth Pawar. Amadea Enterprises, a firm co-owned by Parth Pawar and his cousin Digvijay Patil, had entered into an agreement with Shital Tejwani, the power of attorney representing 272 purported landowners, and executed a ₹300 crore sale deed for the land.
Projects such as Pune Metro Phases 1 and 2, the Pune Ring Road, and upgraded expressways are improving connectivity to Mumbai, PCMC, and emerging suburbs, thereby transforming accessibility across the region. This infrastructure push is driving the emergence of new real estate hotspots and boosting demand in previously underdeveloped corridors.
Areas such as Baner, Balewadi, and Wakad are benefiting from metro expansion and proximity to Hinjewadi IT Park, while Kharadi and Wagholi are emerging as key eastern hotspots driven by IT-led demand and improved airport access. The Hinjewadi Phase 2–3 belt is gaining traction with new township projects and metro connectivity, whereas Undri, NIBM, and Mohammadwadi are drawing buyers seeking mid-to-premium housing along the upcoming Ring Road.
On the western front, Tathawade, Punawale, Sus, and Mahalunge are emerging as lifestyle housing destinations, and areas near Purandar, which are expected to benefit from the proposed airport, are being closely watched as future growth zones.
According to a Knight Frank India’s report, the city’s office market registered 2.3 mn sq ft of transactions in Q3 2025, reflecting a 9% YoY decline even as it still posted a 7% growth in year-to-date (YTD) activity compared to 2024. As per a Cushman & Wakefield report, Pune is ranked 4th among Asia-Pacific’s emerging data centre hubs. It noted that the city is rapidly becoming a preferred destination for hyperscalers and enterprise-grade colocation facilities. As of Q1 2025, Pune’s operational data center stock stands at 112 IT MW.
Frequently Asked Questions
What is causing the 'sticker shock' in Pune's real estate market?
The 'sticker shock' in Pune's real estate market is caused by a sharp rise in property prices, particularly for smaller apartments. This increase in listed prices has made it difficult for first-time buyers and those seeking affordable housing options, leading to slower purchase decisions and weaker sales volumes.
What is driving the demand for luxury housing in Pune?
The demand for luxury housing in Pune is driven by rising incomes and an expanding base of affluent buyers, including IT professionals, entrepreneurs, and business owners. Limited land availability in central areas and the presence of multinational companies in the IT, automotive, and education sectors are also contributing factors.
What recent land scam has put Pune's real estate market in the spotlight?
A recent land scam involving the alleged illegal sale of 40 acres of government land in the upscale Mundhwa area to Amadea Enterprises has put Pune's real estate market in the spotlight. The deal, worth ₹300 crore, has triggered a political storm in Maharashtra, centring on Deputy Chief Minister Ajit Pawar’s son, Parth Pawar.
How are infrastructure projects impacting Pune's real estate market?
Infrastructure projects such as Pune Metro Phases 1 and 2, the Pune Ring Road, and upgraded expressways are improving connectivity to Mumbai, PCMC, and emerging suburbs. These projects are driving the emergence of new real estate hotspots and boosting demand in previously underdeveloped corridors, particularly in areas like Baner, Balewadi, and Kharadi.
What is the current state of Pune's office and data centre markets?
According to Knight Frank India’s report, Pune’s office market registered 2.3 million square feet of transactions in Q3 2025, reflecting a 9% YoY decline. However, it still posted a 7% growth in year-to-date (YTD) activity compared to 2024. Pune is also ranked 4th among Asia-Pacific’s emerging data centre hubs, with an operational data center stock of 112 IT MW as of Q1 2025.
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