Pune's Residential Market Sees 20% Drop in New Home Sales Amid IT Layoffs and Tariffs
Pune’s residential property market recorded a 20% decline in new apartment sales in 2025, industry experts reported, as global trade tariffs, IT sector layoffs, and economic uncertainty dampened buyer sentiment. According to market research and property consultants, the city saw absorption of 65,135 units in 2025, down from 81,090 units in 2024, highlighting one of the sharpest slowdowns among India’s top metropolitan areas.
An official from a leading real estate consultancy noted that Pune’s slowdown reflects a combination of external pressures and structural factors. “This year witnessed broad-spectrum challenges, including geopolitical tensions, sectoral layoffs, and higher property prices, which contributed to weaker demand,” said an industry observer. Data shows that Hyderabad experienced a 23% decline in new home sales, MMR 18%, and Kolkata 12%, while Chennai recorded a 15% increase. Crisil analysts attributed part of Pune’s slowdown to the higher-base effect, where elevated sales in 2024 tempered growth in 2025. Despite the overall decline, the premium and luxury segments continued to witness steady demand, with developers reporting rising capital values and larger average apartment sizes.
There is strong interest in 2-, 3-, and 4-BHK homes within integrated townships offering commercial and lifestyle amenities, according to the president of a regional real estate association. Emerging residential corridors such as Baner-Mahalunge, Balewadi-High Street, and Punawale have seen concentrated growth in premium housing, driven by buyer preferences for well-planned, multicultural communities. Leading developers confirmed that long-term demand is increasingly concentrated in high-value segments, while budget and affordable housing faced a decline in both launches and sales, contributing to the overall contraction.
Market experts also highlighted that home loan affordability remained relatively stable, supporting selective transactions, particularly in the luxury category. An official from a property consultancy stated, “Even as overall volumes declined, registrations in premium segments indicate sustained investor confidence and a shift toward quality over quantity.” Looking ahead, industry professionals forecast moderate growth in 2026, estimating a 3-7% increase on the already elevated base, underpinned by continued demand for premium housing and lifestyle-centric developments. Analysts suggest that policy support, combined with targeted urban planning and mixed-use township projects, could help revive activity in mid-market and affordable segments, balancing Pune’s residential ecosystem.
The trend underscores an evolving market where sustainability, integrated amenities, and lifestyle-driven planning increasingly shape buyer decisions, highlighting the importance of urban development strategies aligned with inclusive and long-term city growth.
