Pune's New Home Sales Plummet 20% in 2025: US Tariffs and IT Layoffs to Blame
Pune: The real estate market in Pune has seen a significant dip, with new apartment sales declining by 20% in 2025. This downturn is largely attributed to US tariffs and layoffs in the IT sector, according to leading market research agencies and property consultants.
Anarock Group Chairman Anuj Puri highlighted that 2025 has been a year of broad-spectrum upheaval, encompassing geopolitical turmoil, layoffs in the IT sector, tariff tensions, and other uncertainties. Anarock data revealed that the absorption of new flats in Pune stood at 65,135 units in 2025, down from 81,090 units in the previous year.
Aniket Dani, Director at market research agency Crisil, explained that the decline in the residential housing market was also driven by increased property prices and the higher base effect from the elevated home sales data in 2024. This higher-base effect has offset sales in the current year.
The fall in new home sales in Pune is one of the most pronounced among the top metro cities. Hyderabad experienced a 23% decline, followed by MMR (18%) and Kolkata (12%). The only exception is Chennai, which saw a 15% uptick in new home sales. Across the top 7 metro cities, sales of new apartments fell by 14% in 2025 to 3.95 lakh units.
Despite the slowdown, premiumisation in the sector continues, marked by sharp capital value appreciation and larger average carpet areas in new apartments. Developers remain optimistic about growth prospects in the coming year, particularly in the demand for premium homes.
Manish Jain, President of Credai's Pune chapter, noted that landmark policy moves and India's rise in the luxury housing segment have reshaped homebuyers' preferences. There is a growing demand for 2-, 3-, and 4-BHK homes in integrated and multicultural townships that include commercial and housing spaces.
Nitin Pardeshi, Director of Justo RealFintech, pointed out that this trend is more prevalent in emerging corridors such as Baner-Mahalunge, Balewadi-High Street, and Punawale. KT Jithendran, MD and CEO of Birla Estates, added that long-term demand from buyers is concentrating in the premium and luxury segments, with large developers expanding aggressively in this space.
In the budget categories, both demand for and supply of luxury housing increased in 2025, with a trend towards bigger homes constructed by branded developers. However, the decline in the number of launches in the mass market and affordable housing, which formed the bottom of the pyramid, led to the slowdown in the overall home segment.
Aakash Agarwal, MD of Krisala Developers, forecasted that the real estate market will maintain a steady momentum with 3-7% growth on an already elevated base in 2026. Akash Pharande, MD of city-based developer Pharande Spaces, expressed concern over the shift in the market, noting that buyers in Pune's affordable segment have either put off buying or exited the market altogether. This shift away from rational and affordable housing prices is worrisome for a market that was once defined by such characteristics.
