Pune’s Real Estate Slows in Jan 2025, Luxury Sales Hold Strong

Pune’s real estate market experienced a slowdown in early 2025, with home sales dipping by 8% compared to the same period last year. According to a recent report by Knight Frank India, the city witnessed the sale of 16,330 residential units in January 2025, a decline from 17,786 units sold in January 2024. Despite the dip in total transactions, stamp duty revenue remained steady, touching ₹590 crore, slightly higher than ₹589 crore recorded in the previous year.

The slowdown is primarily observed in mid-range housing, particularly in properties priced between ₹25 lakh and ₹1 crore. A key takeaway from the report is the resilience of the luxury housing segment. Demand for homes priced above ₹1 crore has witnessed an uptick, contributing to stable revenue generation despite the overall dip in sales volume.

Breakdown of Home Sales Trends:

• Affordable Homes (under ₹25 lakh): 24% of total sales (up by 2% from last year)

• Mid-Range Homes (₹25–50 lakh): 30% of total sales (down by 2% from last year)

• Upper Mid-Range Homes (₹50 lakh — ₹1 crore): 31% of total sales (down by 2% from last year)

The decline in mid-segment sales indicates a cautious buyer sentiment, possibly influenced by economic factors, interest rates, and inflation concerns. On the other hand, affordable housing continues to attract first-time buyers, while premium and luxury segments remain resilient, driven by high-net-worth individuals seeking exclusive properties.

Experts believe that Pune’s real estate landscape is undergoing a structural shift, where affordability and high-end luxury homes are emerging as the primary drivers. While mid-segment homebuyers adopt a wait-and-watch approach, developers are catering to both budget-conscious buyers and premium clientele.

As the sector adapts to shifting preferences, industry players remain optimistic about long-term growth, with luxury housing leading the way.