Pune Real Estate Market Shows Strength in January 2025 Despite Registration Drop
Pune’s real estate market showed unexpected strength in early 2025, balancing lower transaction volumes with steady revenue and changing buyer preferences. Despite an 8% year-on-year drop in property registrations—16,330 units sold compared to 17,786 in January 2024—stamp duty collections stayed the same at ₹590 crore, nearly matching the previous year’s ₹589 crore. This balance highlights the market’s adaptability to economic changes.
The Premium Paradox: Luxury Properties Gain Traction
A key factor for stability was the premium segment, where properties priced over ₹1 crore increased from 13% to 15% of total transactions. This rise shows cautious buying in mid-range brackets (₹25 lakh–₹1 crore dipped by 2% YoY) and a preference for upscale lifestyles post-pandemic. Developers catering to this demand found validation through stable margins despite fewer deals.
Larger Homes Drive Buyer Choices
Buyers prioritized bigger homes, with units over 800 sq ft rising from 28% to 31% of sales. People seemed willing to invest more in square footage as a safeguard against post-COVID remote work. Meanwhile, mid-sized apartments (500–800 sq ft) saw a slight drop to 45%, suggesting a retreat in speculative middle-market demand.
Regional Shifts: Central Dominance and Suburban Growth
Central Pune kept its lead with an 81% transaction share, supported by Haveli Taluka and municipal corporation zones. However, West Pune became a growth area, rising from 8% to 12%, driven by infrastructure developments in Mawal and Mulshi. While North/South/East regions held steady, this regional shift indicates price sensitivity might be guiding buyers to peripheral areas.
KEY DATA HIGHLIGHTS
- Premium Growth: ₹1 crore+ properties now account for 15% of transactions
- Spatial Shift: Apartments >800 sq ft now make up 31% of sales
- Regional Distribution: Central Pune ↓2% YoY to 81%; West Pune ↑4% to 12%
Market Outlook: Expert Insights
Shishir Baijal, Knight Frank India CMD, believes employment stability and expected home loan rate cuts could support mid-market recovery. Even with affordability concerns, developers are adjusting portfolios to match buyer preferences for quality and space—strategies likely to keep market momentum going through 2025.