Pune’s housing market is seeing a fresh test of demand for public housing as the Maharashtra Housing and Area Development Authority (MHADA) reopens sales for 634 unsold homes at Tathawade Phase-II. With prices reaching ₹65.50 lakh for the most expensive Middle Income Group (MIG) unit, the offering also raises questions about where public housing ends and mainstream middle-income housing begins.
The second sale includes 633 MIG homes and one Lower Income Group (LIG) home. MHADA has set prices between ₹64.50 lakh and ₹65.50 lakh for the MIG units, while the remaining LIG home is priced at around ₹46 lakh. The scale of unsold inventory is significant because the scheme was initially marketed with 792 homes. The size of the apartments partly explains the pricing. MIG units measure between 89.15 and 91.18 square metres of built-up area, equivalent to roughly 960 to 981 square feet. LIG homes range from 75.96 to 77.99 square metres. The higher-priced apartments therefore provide substantially more space than the smaller category. The project also includes facilities such as designated four-wheeler parking, a clubhouse, swimming pool, indoor games area, children’s play space and an open gym. Solar power infrastructure and electric-vehicle charging facilities are also part of the development. These features indicate how the definition of housing affordability is changing, with buyers increasingly weighing not only the apartment price but also mobility, energy and shared amenities.
However, the large number of unsold MIG homes points to a potential affordability mismatch. When the scheme was initially offered in April, MHADA received 304 applications for 768 MIG units, according to the available scheme data. In contrast, 438 applications were received for just 24 LIG homes. After the earlier allotment process, 633 MIG units remained available. For Pune’s expanding western suburbs, this gap matters beyond the project itself. Tathawade sits within a rapidly urbanising belt linked to employment centres, educational institutions and major transport corridors. Housing that is formally categorised as public or subsidised can still become difficult to access when household budgets must also cover commuting, maintenance, parking and other recurring costs.
Urban housing experts say future schemes may need sharper income targeting and stronger alignment between home prices, public transport and employment locations. Energy-efficient features can reduce long-term operating costs, but they cannot compensate for an upfront price that is beyond the reach of intended beneficiaries. The Tathawade Phase-II second sale will therefore offer more than another opportunity to purchase a home. It will provide a useful indicator of how Pune’s middle-income households are responding to public housing priced at the upper end of the segment—and whether future housing policy needs to place greater emphasis on affordability, location and total cost of living.
