Summary of this article
New homes command premium over resale properties
Mumbai premium hits 23%, Pune 22%
Buyer preference shifts to modern housing
New homes are driving a growth cycle in resale properties in the Mumbai market. A recent report by 1 Finance Magazine highlights the housing trends across Maharashtra, revealing that the pricing gap has widened in key urban centres like Mumbai, Pune, and Thane over the past decade. What used to be a small difference has now evolved into a clear and major measurable premium that is mainly driven by the changing buyer preferences, infrastructure upgrades, and the growing reverence for the modern housing segment.
As per the report, the rates for new homes in Mumbai have risen to 23 per cent, while in Pune, the premium for new homes stands at 22 per cent. Thane, however, stood at a moderation of 8 per cent, which reflects the underlying trend of buyers who are willing to pay more for the newly constructed properties instead of the resale stock, even if the locations are the same.
Transformation in Dynamics
Resale properties have often held an advantage in the real estate market, mostly due to established locations and immediate availability. However, the last decade has shown a counter in this movement. In Mumbai, the premium for new homes has expanded quite fast. From approximately 5 per cent in 2016 to 23 per cent in 2025, the demand for new premium homes has shifted. This shift clearly highlights a decisive change in the buyer preferences and priorities; from simply desiring a decent pin code to nit-picking the value, quality and features of the property.
“Earlier, the right pin code was enough; today, buyers are paying a premium for product quality, new supply and connectivity. The gap between primary and resale stock in the same micro-market is now in double digits, making infrastructure-linked pockets far more decisive for both end-users and investors. As infrastructure reshapes commute maps across India, pricing power will increasingly be set by connectivity-led pockets and the new supply entering them,” says Purvang Mashru, Senior Quantitative Research Analyst, 1 Finance.
Greater Mumbai remains India's most expensive housing market, with an average primary price of Rs 35,602 per square foot as of December 2025. The city-wide new-home premium has expanded from 5 per cent in 2016 to 23 per cent in 2025. This is a decisive shift that is reflecting buyer preference for modern projects with parking, security, and modern layouts over ageing secondary stock sharing the same address. The premium varies widely across the different markets in Mumbai. South Mumbai, in this matter, witnessed a 46 per cent premium rise comparatively, whereas the central areas suggested a modest comparison of 8 per cent.
Eastern suburbs show a 28 per cent rise from the subtle demand of 2 per cent back in 2016, currently standing at 30 per cent.
This fragmented growth indicates that the real estate pricing is no longer translated by the city-wise trends. The nature of the housing is now dictating the decision-making of homebuyers. Things like micro market characteristics, infrastructure, connectivity, and the availability factor.
Pune’s Sharp Reversal: From Discount to Premium
In 2016, resale homes in various parts of the city of Pune were priced much higher than the homes offered in the new launches, which resulted in a negative premium for primary properties. By 2025, this trend has completely reversed with new homes that command at 22 per cent city-wide. This reversal is related to Pune’s ever-evolving housing ecosystem. Nearly 48 per cent of the city’s inventory is less than five years old, which indicates a surge in new developments. The city has also recorded a demand post-pandemic, with over 62,000 units sold in 2025 itself. “Maharashtra’s housing market is seeing a structural repricing.
Areas like Hinjewadi, Wakad, and Wagholi have received a great boost in changing from the resale market to the new homes market, mainly due to a close proximity to IT hubs and integrated townships.
One of the significant insights of the report is the increasing fragmentation. Earlier cycles, where entire cities moved in tune with each other, today’s market is shaped by these micro-level factors.
Pricing is shifting towards specific pockets that are a well-mixed combination of infrastructure, supply and strong demand.
