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Pune Housing Market Faces Sensitive New Phase
9 Jan
Summary
- Pune residential prices rose 11.8% year-on-year to ₹7,367 per sq ft.
- New launches reached 98,472 units, increasing unsold inventory value.
- Market now sensitive to pricing discipline and supply timing for stability.
Pune's residential real estate market, as of December 2025, experienced a significant price increase of 11.8% year-on-year, reaching ₹7,367 per sq ft. This marks the sharpest annual rise in five years. Housing sales remained stable at approximately 90,591 units, aided by a nearly 125 basis point drop in interest rates, which improved affordability by about 9%.
Supply surged with 98,472 new launches, exceeding absorption and leading to an inventory increase. Unsold inventory now stands at 81,330 units, with a record total value of ₹85,680 crore, up nearly 30% from the previous year. The inventory overhang has risen to 10.77 months, signaling a shift in market dynamics.
Experts caution that the market is no longer on autopilot and has become sensitive to missteps. While not in a downturn, the risk lies in a gradual softening if supply discipline weakens or prices rise indiscriminately. The focus is now on better-timed supply and pricing discipline rather than simply increasing volume.
