Pune’s residential real estate market demonstrated robust growth in 2025, driven largely by a surge in high-end and luxury housing, reflecting shifting buyer preferences and the city’s evolving urban landscape. Nearly 44,000 units were launched during the year, highlighting a strategic tilt toward larger, amenity-rich homes in prime locations, and signalling strong investment confidence in Pune’s residential sector.
Analysis of quarterly launches indicates that high-end and luxury homes accounted for close to half of all new developments, increasing approximately 12% year-on-year. This trend underscores a growing demand for lifestyle-oriented housing that combines modern amenities with proximity to employment hubs. Mid-segment housing maintained a stable presence, contributing an equal share of launches, while affordable housing activity declined by over 10%, reflecting a market focus on higher-value units. Key growth corridors included the NH4 Bypass (North), North-East, North Peripheral, and South-East II sub-markets. The NH4 Bypass (North) led new supply with more than 4,000 units, benefiting from its connectivity to Hinjewadi’s IT clusters. The North-East and North Peripheral zones gained traction thanks to ongoing infrastructure projects, including Metro Line 3 and the Pune Ring Road, which are enhancing commuting efficiency and supporting the expansion of residential micro-markets. Urban planners note that such connectivity improvements are critical for promoting compact, sustainable urban growth and reducing congestion pressures.
The focus on premium launches has also influenced capital values. Pune’s weighted average residential price reached approximately Rs 12,300 per sq. ft. in Q4 2025, reflecting an 11% increase from the previous quarter, while remaining stable year-on-year. Rental values followed a similar pattern, rising 2-4% annually, supported by steady demand from the city’s IT and ITeS workforce concentrated in hubs such as Hinjewadi, Kharadi, and Nagar Road. Market experts highlight that these trends make Pune increasingly attractive to both high-net-worth individuals and non-resident investors seeking long-term returns. Emerging lifestyle-driven housing preferences, combined with Pune’s expanding employment base in technology and manufacturing, are expected to sustain demand for high-end and luxury units. Areas like Aundh–Baner, Koregaon Park, and Viman Nagar, along with IT corridors, are witnessing targeted development of premium apartments, reflecting the city’s dual strategy of meeting professional housing needs while offering aspirational living spaces.
Looking ahead, Pune’s residential market is likely to remain resilient, underpinned by continued urban infrastructure investment, a maturing real estate ecosystem, and strong buyer confidence in mid and premium segments. For urban planners and developers, balancing high-end growth with sustainable, inclusive housing solutions will be critical to ensuring equitable urban expansion in line with long-term city planning goals.
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Pune Residential Market Fueled By Premium Housing
