Pune: New apartment sales declined 20% this year largely because of tariffs imposed by the US and lay-offs in the IT sector, leading market research agencies and property consultants said. Anarock Group chairman Anuj Puri said 2025 has been a year of broad-spectrum upheaval, including geopolitical turmoil, layoffs in the IT sector, tariff tensions and other uncertainties. Anarock data showed that absorption of new flats in the city stood at 65,135 units in 2025 as against 81,090 units the year before. Aniket Dani, director at market research agency Crisil, said the decline in the residential housing market was also driven by increased property prices and already elevated home sales data in 2024, offsetting sales this year. This is referred to as the higher-base effect.The fall in new home sales in Pune is one of the most pronounced among the top metro cities. Hyderabad showed a 23% decline in new home sales, followed by MMR (18% ) and Kolkata (12%). The only exception is Chennai, with a 15% uptick in its new home sales. Across the top 7 metro cities together, sales of new apartments fell 14% in 2025 to 3.95 lakh units (See graphic).Crisil analysts said despite the slowdown, premiumisation in the sector continues, marked by sharp capital value appreciation and larger average carpet areas in new apartments. Developers are also optimistic about the growth prospects in the coming year, banking on demand for premium homes.“Landmark policy moves coupled with India’s remarkable rise in the luxury housing segment have reshaped homebuyers’ preferences,” said Manish Jain, president of Credai’s Pune chapter.Jain said there was a growing demand for 2-, 3- and 4-BHK homes in integrated and multicultural townships that include commercial and housing spaces. “This is more prevalent in emerging corridors such as Baner-Mahalunge, Balewadi-High Street and Punawale,” said Nitin Pardeshi, director of Justo RealFintech.KT Jithendran, MD and CEO of Birla Estates, said long-term demand from buyers was concentrating in the premium and luxury segments, and large developers were expanding aggressively in the space.Among budget categories, both demand for and supply of luxury housing rose in 2025, with the trend towards bigger homes constructed by branded developers continuing. Analysts said the decline in the number of launches in the mass market and affordable housing, which formed the bottom of the pyramid, led to the slowdown in the overall home segment.“In 2026, the real estate market will maintain a steady momentum and 3-7% growth on an already elevated base,” said Aakash Agarwal, MD, Krisala Developers. “The market moved more towards luxury, with higher-value transactions making up most of registrations. Buyers in Pune’s affordable segment either put off buying or got off the market for now. For a market once defined by rational and affordable housing prices, this is worrisome,” said Akash Pharande, MD of city based developer Pharande Spaces.
