Pune – Residential Real Estate Overview

In the first half of 2023, the residential market in Pune remained stable as it recorded total sales of 21,670 units, experiencing a slight decline of 0.6% YoY. Despite facing various challenges, the market demonstrated resilience, as reflected in the steady sales figures for the first half of the year. 

While a significant portion of homebuyers consists of migrant workers, particularly salaried employees seeking housing mortgages, their perception of the market remains positive, even in the face of consecutive increases in mortgage rates which have impacted consumers’ purchasing capacity. 

During H1 2023, the real estate market in Pune witnessed significant expansion in project launches, demonstrating a YoY rise of 22%, resulting in a total of 21,234 new units. Of all the markets, Pune stood out as the sole market to achieve substantial double-digit growth in project launches during this period. 

The city’s emergence as a thriving IT and ITeS hub, coupled with the government’s emphasis on infrastructure development, has positioned Pune as a crucial destination for housing. As a result, prominent developers are actively pursuing this as a significant opportunity. 

The first half of 2023 witnessed a notable shift in the share contribution of new project launches across different zones in Pune. The Central, Western, and Northern Zones experienced significant increases, accounting for 20%, 26%, and 10% of the total launches, respectively. On the other hand, the share contribution of the South and East Zones contracted, comprising 20% and 24% of the total launches, respectively. With the growing trend of return to office-based work, residential properties located near key employment hubs such as Hinjewadi and Baner in the West Zone are expected to experience a surge in sales momentum. These areas, known for their proximity to major workplaces, are expected to attract homebuyers seeking convenient access to their workplaces, leading to increased demand and sales activity