Pune is witnessing an unprecedented surge in building permissions, with new data revealing that the number of approved construction plans has more than doubled over the last five years.
In the financial year 2024-25, the Pune Municipal Corporation (PMC) granted approval for 1,270 new building projects, bringing the total number of sanctioned plans, including revisions, to 3,359. This represents a marked increase compared to previous years, with 1,123 new approvals in FY 2023-24, 1,039 in FY 2022-23, and just 579 in FY 2020-21.
The surge in building permits is attributed to a combination of factors. Notably, there has been a sharp rise in demand for redevelopment projects, driven in part by a growing influx of migrants, particularly from the IT sector. PMC officials noted that the new demand for housing, commercial spaces, and urban infrastructure is a direct consequence of Pune’s expanding economic landscape. The city’s increasing construction activity has been further accelerated by the introduction of new technological solutions, such as a GPS-based dashboard for approval processes. The system has significantly reduced the time-consuming nature of obtaining permissions and has facilitated faster decision-making. According to officials, this technological upgrade has also alleviated the pressure of year-end delays, helping speed up the approval process for building projects.
Despite these advancements, urban planners have expressed concern over the city’s ability to manage the exponential growth of its built-up area. Several experts have highlighted that the pace of construction is not being matched by the expansion of essential civic infrastructure. There are rising concerns that inadequate planning could lead to challenges in water supply, waste management, and road networks, especially in rapidly developing zones. Ramchandra Gohad, an urban planner, emphasized that while Pune’s growth is certainly a positive sign, the municipal authorities must ensure that new developments do not outpace the city’s ability to provide essential services. Areas around major public transport hubs, such as the Metro, have witnessed particularly high levels of densification, which puts further strain on the city’s infrastructure. Gohad suggested that the administration focus on improving roads, water supply, and drainage systems to keep up with the growing population. In addition to residential and commercial growth, the increasing demand for construction in transit-oriented development (TOD) zones has played a significant role in driving the rise in permissions. These zones are expected to see a major shift in how residential and commercial developments are designed, particularly as the city continues to prioritise sustainable transport options.
PMC data further reveals that the total area approved for construction in FY 2024-25 spanned over 26.6 million square metres, compared to 22.3 million square metres in the previous fiscal year. In a significant milestone, the building permissions department exceeded its revenue target for the second consecutive year, generating a record Rs 2,601 crore, outpacing the usual leader, the property tax department. The booming construction sector has emerged as a key revenue driver for the civic body, which is increasingly looking towards sustainable development practices to support the city’s growth. However, experts urge the PMC to continue its focus on integrating eco-friendly and climate-resilient infrastructure into new developments, ensuring that Pune remains a model for sustainable urban living. With demand for building permits at an all-time high, the city’s trajectory towards urbanisation is clear. But the question remains: can Pune’s infrastructure keep pace with the rapid construction boom, or will its growth face critical bottlenecks in the years ahead? As the city continues to evolve, it will be essential for the authorities to strike the right balance between growth and sustainability.
