The Pune and PCMC housing markets in 2025 reflected a phase of transition rather than expansion.
While the city’s long-term fundamentals remained intact, the year exposed growing stress beneath the surface, marked by affordability challenges, shifting buyer preferences, and a widening gap between transaction values and actual unit sales.
After years of rapid post-pandemic growth, the market moved into a more selective phase, with mid-premium and luxury homes dominating activity, even as demand weakened in the affordable segment.
Pune and PCMC Housing Market Outlook: Strong Registrations Mask Decline in Unit Sales
On the surface, 2025 appeared robust for Pune real estate, with the city recording its strongest property registration performance in four years.
More than 1.70 lakh registrations were logged between January and November, marginally higher than the same period in 2024. September proved pivotal, with registrations rising over 22% year-on-year during the festive season, while November alone saw more than 14,200 registrations.
However, this headline growth contrasted sharply with actual housing sales. Data from ANAROCK showed that Pune’s residential unit sales declined 20% in 2025, falling from 81,090 units in 2024 to 65,135 units. This marked the second-steepest decline among major Indian cities, after Mumbai.
The divergence indicates a market increasingly driven by high-value transactions.
Luxury and upper mid-segment homes accounted for a disproportionate share of registrations, while buyers in the affordable category either postponed purchases or exited the market altogether – an unusual shift for a city historically known for price rationality.
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Pune and PCMC Housing Market Drive Activity
Central Pune – including PMC, PCMC, and Haveli Taluka – remained the backbone of residential demand, accounting for over 60% of total housing transactions in 2025.
Proximity to IT employment hubs and established social infrastructure continued to support this dominance.
Within this region, PCMC outperformed on several parameters. Residential prices in PCMC rose over 10% in Q1 2025 compared to the same period last year, surpassing PMC’s 8.7% growth. Micro-markets such as Moshi, Punawale, and Wakad led this appreciation.
PCMC also stood out on rental performance. Ravet delivered annual rental yields of around 4.3%, significantly higher than Mumbai’s 2.5% benchmark. This sustained yield strength has continued to attract investors seeking stable, risk-adjusted returns.
At current prices of ₹6,500–9,000 per sq ft, areas such as Ravet and Nigdi remain accessible for first-time buyers and mid-income households, especially when compared to western Pune corridors like Baner (₹9,000–13,000 per sq ft) and Kharadi (₹9,500–14,500 per sq ft).
Pune and PCMC Housing Market: Affordability Pressures Push Up Unsold Inventory
Affordability emerged as the biggest challenge in 2025. A home priced at ₹40 lakh in 2020 now costs nearly ₹60 lakh, translating into EMI outgo that is ₹12,000–18,000 higher per month, even after recent rate moderation.
Sales in the sub-₹50 lakh segment declined sharply, with several micro-markets witnessing year-on-year drops of 5–30%. As demand slowed, unsold inventory rose steadily.
By mid-2025, Pune had over 75,000 unsold units, with inventory overhang exceeding 10 months – the highest since 2020. By year-end, unsold stock in the primary market crossed 77,800 units.
This excess inventory has tied up developer capital and could exert downward pressure on pricing if demand does not revive meaningfully in 2026.
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Pune and PCMC Housing Market Outlook: Employment and Global Factors Weigh on Buyer Sentiment
While India’s macroeconomic stability shielded it from global shocks, job-linked sectors faced headwinds in 2025.
The technology sector – Pune’s primary demand driver – saw layoffs and hiring freezes, particularly in the second and third quarters. Geopolitical tensions and tariff-related uncertainties affected NRI investment flows.
Historically, NRI demand has acted as a buffer for Pune’s real estate market during downturns, making its moderation particularly significant.
As a result, hesitation increased among mid-segment homebuyers, even as most developers remained heavily invested in this category.
Although luxury housing performed relatively better, it still represents less than 20% of Pune’s annual housing sales, leaving a large portion of the market dependent on stronger demand recovery.
Pune and PCMC Housing Market Outlook: 2026 Outlook: Stability Over Speculation
Looking ahead, most real estate consultants expect 2026 to be a year of stabilisation rather than rapid recovery. Annual price growth is likely to moderate to 5–10%, lower than the 10–15% appreciation seen between 2020 and 2024.
This slower pace could prove beneficial for end-users, allowing incomes and savings to catch up with housing prices. For investors, returns are expected to remain selective, with infrastructure delivery emerging as the key differentiator.
The expected completion of Pune Metro Phase 1 by mid-to-late 2026 could drive price appreciation of 15–20% within 500-metre corridors.
Similarly, the Ring Road project is likely to unlock peripheral growth, with prices in affected zones potentially rising 20–25% as redevelopment nodes emerge.
Purandar Airport is also expected to reshape demand along Pune’s southern corridor.
Pune and PCMC Housing: Need for Supply Realignment
As 2025 draws to a close, affordability remains a structural concern for the Pune and PCMC housing market. The shift towards mid-premium and luxury housing has pushed many buyers towards the outskirts or out of the market entirely.
Developers will need to recalibrate their supply mix and ensure that pricing remains aligned with real demand. Rational price discovery and product-market fit will be critical in determining how smoothly Pune and PCMC housing market navigates 2026.
