Pune’s residential property market is entering a natural pause after years of rapid growth. While affordability has taken a hit—worsening by 45% from 4.38x annual income in 2020 to 6.52x in 2025—the luxury segment tells a different story. Once dormant, Pune’s luxury housing market has rebounded sharply post-COVID, with high-value inventory selling out in months.
Developers are now expected to pivot toward smaller, more efficient homes that balance livability with affordability. Instead of cutting prices, the focus is shifting to smarter layouts and reduced total outgo.
On the supply side, new launches have declined by 10.3%, while unsold inventory has risen to 77,825 units. The inventory overhang now stands at 10.78 months—the highest since 2020. The replacement ratio has reached 1.08, indicating slight oversupply.
According to Gera Pune Residential Realty Report, rising home prices and larger apartment sizes are prompting buyers to reassess, leading to what developers are calling “sticker shock.”
Rohit Gera, Managing Director of Gera Developments, likens the shift to a retail moment: “It’s like picking up a Rs1,200 shampoo bottle and putting it back. Buyers are seeing the final cost and stepping back—especially in the budget and mid-income categories.”
Structurally, Pune’s market is becoming more organized. While smaller projects (under 100 units) have dropped by 39% since 2018, large-scale developments (over 500 units) have grown by 70%. This reflects a shift toward professionally managed formats better suited to evolving buyer needs.
Geographically, East Pune led price growth with 9.6% appreciation, followed by West Pune at 6.8%. Areas like Hinjewadi, now connected via new Metro lines, are attracting value-conscious buyers seeking better connectivity and livability.
Looking ahead, developers are likely to focus on rightsized products—compact, thoughtfully designed homes that balance comfort with affordability. As Gera notes, “Quality, trust, and a solid track record will matter more than ever. Buyers need to make smart choices. Developers, in turn, need to be more thoughtful in what they offer—and for whom.”
