The residential real estate market in Pune has faced a significant setback in 2025, with sales of new apartments declining by a sharp 20%. Leading market research agencies and property consultants attribute this downturn primarily to the ripple effects of layoffs in the IT sector and tariffs imposed by the United States, which have created economic uncertainty and impacted buyer sentiment.
A Year of Upheaval for Pune's Property Market
Anuj Puri, Chairman of Anarock Group, described 2025 as a year of broad-spectrum upheaval marked by geopolitical turmoil and economic uncertainties. Data from Anarock reveals the stark numbers: the absorption of new flats in Pune stood at 65,135 units in 2025, a notable drop from the 81,090 units sold in 2024. Aniket Dani, Director at Crisil, added that the decline was further driven by increased property prices and the higher-base effect of elevated sales in the previous year, which offset current performance.
This decline places Pune among the worst-hit major metro cities in India. Hyderabad led with a 23% fall in new home sales, followed by the Mumbai Metropolitan Region (MMR) at 18% and Kolkata at 12%. Chennai was the sole exception, recording a 15% increase in sales. Cumulatively, across the top seven metro cities, new apartment sales fell 14% in 2025 to 3.95 lakh units.
The Luxury Segment Defies the Slowdown
Despite the overall market slowdown, a clear trend of premiumisation continues unabated. Analysts note sharp capital value appreciation and larger average carpet areas in new launches, indicating sustained demand in the upper segments of the market. Developers remain optimistic, banking on this demand for premium homes.
"Landmark policy moves coupled with India's remarkable rise in the luxury housing segment have reshaped homebuyers' preferences," said Manish Jain, President of Credai's Pune chapter. This shift is evident in the growing demand for 2-, 3-, and 4-BHK homes within integrated townships that blend commercial and residential spaces. Nitin Pardeshi, Director of Justo RealFintech, highlighted that this trend is particularly strong in emerging corridors like Baner-Mahalunge, Balewadi-High Street, and Punawale.
Market Polarization and Future Outlook
The market is experiencing a clear polarization. KT Jithendran, MD and CEO of Birla Estates, confirmed that long-term buyer demand is concentrating in the premium and luxury segments, prompting large developers to expand aggressively in this space. Conversely, the affordable and mass-market segments, which form the base of the pyramid, have seen a decline in new launches, contributing significantly to the overall sales slowdown.
Akash Pharande, MD of Pharande Spaces, expressed concern over this shift: "Buyers in Pune's affordable segment either put off buying or got off the market for now. For a market once defined by rational and affordable housing prices, this is worrisome." Aakash Agarwal, MD of Krisala Developers, projects a steady momentum for 2026 with a 3-7% growth on the elevated base, driven largely by luxury transactions.
In summary, while external economic factors have dampened overall sales volume in Pune's real estate market, the sector's resilience is being tested by a fundamental shift towards premiumisation, leaving the future of affordable housing in the city uncertain.
