Pune Residential Market: Resilience Amid Transition

The residential real estate market in Pune has long been regarded as one of India’s most stable and user-driven markets. In the latest Knight Frank report. “India Real Estate Residential and Office Market - July - December 2025” highlights the city-wise growth the real estate sector has witnessed. The growth in the city is backed by a strong economic base and a thriving IT and manufacturing ecosystem. The city has witnessed a sustained housing growth, especially in the residential sector.

Demand Trends and Sales

The residential sales in Pune have remained resilient during 2025, while volumes have maintained a moderate growth. The slowdown noticed was not driven by weak buyer sentiment but rather by affordability pressures in selected segments. The buyer demand has yet again anchored the stability of the market, especially in well-connected suburban micro-markets.

The city continues to attract a diverse buyer footing due to the IT sectors, manufacturing setups, entrepreneurs, and investors from the nearby areas. The demand has remained strongest for mid-income and upper-income homes. The premium and luxury segments have grown in the city, especially in established locations like Baner, Aundh, Koregaon Park, and Kalyani Nagar. “Pune’s residential market observed moderation in H2 2025, with housing sales declining to 26,552 units, down 5% YoY. Full-year sales stood at 50,881 units, a 3% YoY decline, indicating a phase of consolidation after the strong growth seen from 2021 to 2024. Demand remained largely end-user driven, but buyers exhibited greater selectivity amid rising prices,” as stated in the report.

One of the defining features of the market this year was the gradual shift buyers made towards large-sized projects and lifestyle-oriented households, and made a move towards the premium, high-end projects. Buyers are now increasingly moving towards spacious layouts, better amenities, green open spaces, and gated living. This form of living is not just a trend anymore; people find it convenient and consider it the new basics for homeownership.

Purchases over Rs 1 crore have steadily increased their share in overall sales, which made the demand in the affordable segments softer. This shift has reflected a move in developer strategies as well, with new project launches that are focusing on the mid-to-premium categories rather than mass housing.

The residential supply has increased in Pune in recent years. Developers are using a new approach towards the upcoming project launches. After several years of strong activity, developers are not aligning their inventory with realistic buyer preferences. A large share of launches was accounted for in Western Pune and North-West Pune. Eastern Pune continues to benefit from its IT and commercial ecosystems, while the south does not.

With strong end-user fundamentals and improving infrastructure, Pune is well-positioned to remain as one of India’s most resilient markets in 2026.