Pune Real Estate Faces Market Reset as Buyers Pause Amid Sticker Shock

Pune’s Housing Market: A Turning Point

For seven years, Pune’s real estate market rode a wave of growth—prices climbed, supply expanded, and homebuyers flocked to new projects. But in 2025, the city’s property story is taking a new turn. The latest Gera Developments Private Limited report reveals a market entering a phase of consolidation, shaped by what experts call “sticker shock”—the cumulative impact of rising prices and ever-larger homes.

The Price of Progress

While prices rose a moderate 7.31% year-on-year, the past five years have seen a 40% jump in rates and a 25% increase in average home sizes. The result? A staggering 76% surge in the average sticker price. For many buyers in the budget and upper-mid segments, this has pushed homes out of reach. Meanwhile, affluent buyers are gravitating toward larger, more luxurious residences, reshaping demand across the city.

Buyers Hit the Brakes

“We’re witnessing the market respond to a steep escalation in total ticket size—what we’re calling sticker shock,” said Rohit Gera, Managing Director of Gera Developments. “Even though interest rates have come down over the last six months, affordability remains a concern as the total outgo for buyers has increased by 76% over five years.”

This sticker shock is causing buyers to pause, slowing purchase decisions and softening demand. Developers are responding with caution, curbing new launches and rethinking home configurations. Gera expects smaller, more efficient homes to return, making properties accessible not through price cuts, but through smarter layouts.

Shifting Market Dynamics

• Prices for new project launches are down 4.73% over the last year, even as the overall market trend remains upward.
• East Pune leads the city in price appreciation, with a 9.6% increase, followed by West Pune at 6.8%.
• Pune now has 2,605 residential projects under development, up 6.7% since June 2024.
• Small projects (under 100 units) have declined by 39% since 2018, while large projects (over 500 units) have surged by 70%.

Emerging Hotspots and Buyer Trends

Areas like Hinjewadi, now connected by new Metro corridors, are seeing stable prices and increased traction from buyers focused on affordability. The market is consolidating, with developers prioritizing financial stability and efficient design to meet evolving buyer needs.

As Pune’s real estate enters this phase of strategic recalibration, buyers are urged to choose projects from developers with strong financial credentials. For those seeking value and long-term security, this is a critical moment to act with care and foresight.