Property Market Updates (monthly/quarterly)

Identify Emerging Trends

National Market Snapshot (Q1 2025)

Sales Decline: Housing sales across the top seven Indian cities fell by 28% year-on-year in Q1 2025, totaling approximately 93,280 units compared to 1.30 lakh units in Q1 2024. Pune experienced a decline of over 30%, while Bengaluru saw the smallest decrease at 16%. ​

PUNE PULSE - Trusted-Connected-Targeted

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Price Increases: Average home prices rose between 10% and 34% across major cities, driven by demand in the luxury and ultra-luxury segments. Delhi NCR and Bengaluru recorded the highest annual price increases of over 34% and 20%, respectively. ​

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Rental Growth: Rental costs in urban areas are projected to increase by 7% to 10% in 2025, outpacing the expected consumer inflation rate of around 4.3%. This trend is contributing to affordability challenges for many potential homeowners. ​

Reuters

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Reuters

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Pune Market Highlights

Sales Performance: Pune accounted for 51% of total sales in the top seven cities, with a year-on-year decline of over 30%. ​

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New Launches: Approximately 16,860 new units were launched in Q1 2025, marking a 10% decrease from the previous year. Notably, 79% of these launches were in the mid and premium segments (priced between ₹40 lakh and ₹1.5 crore). ​

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Inventory Levels: Unsold inventory in Pune decreased by 16% year-on-year, indicating a reduction in available stock. ​

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Market Outlook & Challenges

Affordability Concerns: The rise in home prices and rents is making property ownership increasingly unaffordable for middle- and lower-income groups. The luxury segment is predominantly driving demand, sidelining first-time homebuyers. ​

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Reuters

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Reuters

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Government Measures: Recent tax relief measures, including income tax cuts and eligibility for tax-free status on two self-occupied properties, aim to boost consumption and support the middle class. These initiatives are expected to enhance disposable income and stimulate demand for affordable housing. ​

Reuters

Future Trends

Price Projections: Home prices are expected to rise by 6.5% in 2025, driven by demand from wealthy individuals. However, affordability may worsen unless significant interest rate cuts occur, which are not anticipated in the near term. ​

Reuters

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Reuters

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Regional Variations: While markets like Bengaluru and Delhi NCR are witnessing growth in both sales and supply, cities such as Hyderabad and Chennai are experiencing significant declines in sales and new launches. ​

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