2 weeks Ago By Shashank Didmishe
Pune: Home sales in the city declined by 30% in the first three months of 2025 as buyers played the waiting game amid price increase and global cues, while high-value deals kept the government revenue intact. Developers sold 16,100 flats between January and March compared to 22,990 units in the same period a year ago, data from real estate consultancy firm Anarock shows. The supply of new apartments in the city also dwindled to 16,860 units in Q1 2025 from 18,770 units in the same quarter last year, data showed.
A major portion of homebuyers in Pune are from the IT sector. "As the industry is undergoing a slowdown, the demand from buyers in the IT sector has taken a beating," said a source in the realty sector. The govt's revenue did not take a beating despite the sluggishness in home sales in the first quarter of the year.
"While mid-segment housing has seen temporary saturation after rapid growth in the past two-four years, the luxury segment continues to thrive with sales of over Rs1-crore homes increasing significantly," Vishal Jumani, joint managing director of Supreme Universal, said. Anarock estimated that average residential property price increased in the range of 10% to 34% in Q1 2025. A study of Credai had indicated that the price of houses surged as much as 9% in the last three months of 2024 because of a spurt in medium, premium and luxury home sales.
After the housing market reopened post-pandemic, home prices in Pune increased by 4% to 5% each year. In contrast, home prices moved by a sluggish 2% increase before 2022, an earlier report from Credai showed. For the past two to three years, the growth of home sales in Pune consistently outperformed other metro cities.
So, there was some degree of saturation of the higher base effect playing in, industry players said. Some developers said the reversal of growth in volume was likely to continue in the short-term and the market was set to bounce back. Manju Yagnik, senior vice-president of Naredco, Maharashtra, said this was a natural breather rather than market saturation.
The fall in Pune's housing market is consistent with the national trend, where the top seven cities together saw a 28% decline in sales in Q1. Hyderabad took the steepest hit on home sales with a decline of 49%, followed by Pune, Mumbai and Chennai, data showed. Pune's economic expansion, together with its upgraded infrastructure and continuous professional migration, supported a positive long-term outlook, said Vishwajeet Jhavar, founder and CEO at Marvel Realtors.
"Buyers will become more selective, prioritising value-for-money properties with sustainable townships and community living shaping future developments. Also, once the appraisal season is over and during auspicious periods like Gudi Padwa and Akshaya Trittiya, sales are expected to grow," Jumani said. Stay updated with the latest city news , Air Quality Index (AQI), and weather updates for major cities like Delhi , Mumbai , Noida , and Bangalore on Times of India .
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