Dream homes no longer a reality: Sales drop 29% in ’25

Pune: The city's real estate story this year has been one of caution and recalibration. Homebuyers bought over 12,000 fewer apartments in the first six months of 2025 as compared to the last year — a clear sign that the affordability issue is reshaping the market. New home sales from Jan to June added to just 31,510 units — a sharp 29% drop from the 44,135 units sold in the same period last year. Bharat Agarwal, president of Naredco Pune, said although the sales have dropped significantly, a revival is expected, reflected in the commercial leasing market. "The office market in Pune is at a lifetime high, which only indicates the number of jobs going up. Hence, the second-half of the year shall definitely see a sales recovery," he said.With apartment sizes on the rise and interest rates inching upward, many prospective buyers have taken the wait-and-watch approach. Adding to the problem, slower salary growth and ongoing geopolitical uncertainties have made people think twice before committing to a new home, as per industry insiders.The trend is not limited only to Pune, other metro cities are also facing the heat with Chennai being an exception. The capital of Tamil Nadu registered an 11% increase in the last three months. In the seven metros put together, new home sales fell to 96,285 units in Q2 of 2025 as compared to 1.2 lakh units in the previous year."The housing market was rocked by major military actions at home and abroad. The war-like situation has pushed homebuyers to put their plans on hold. Adding to the impact is the soaring property prices over the past two years," Anuj Puri, Chairman of Anarock, said.Some positive newsThe three recent rate cuts by the Reserve Bank of India (RBI), bringing the policy rate to 5.5% from 6.5%, are being seen as a positive sign by the real estate sector. "This move could be a catalyst for lower borrowing costs, translating into reduced EMIs and improved homebuyer sentiment. Hopefully, banks actively and rapidly pass on the cut to the home buyers," Rohit Gera, MD of Gera Developments, said."Several projects are stuck in the Pimpri Chinchwad Municipal Corporation (PCMC) and adjoining areas on account of environmental clearances. These projects form 45% of the total home market supply in Pune district which led to lack of quality options for the buyers," Manish Jain, president of Pune metro Credai, said. Keeping the cautious approach of the buyers in mind, the developers in Pune reduced the supply of new apartments and controlled the inventory. Addition of new homes in the city declined at almost the same rate when compared to buying as developers added 14,220 units in Q2 of 2025 against 18,920 units in the same period last year. This helped in stabilizing the prices. Pune developers saw a yearly decline in inventory to 80,240 units in Q2 of 2025 from 94,770 units a year ago. "At the same time, the new launches too have dropped. Since both demand and supply have seen a decline, the prices shall remain stable," Naredco Pune president Agarwal said.Higher EMI problemsAditi Deshpande, a Warje resident, said, "I have been looking for a bigger apartment between Erandwane and Warje for almost a year now. But it is my observation that prices have gone up by 35% since the Covid-19 pandemic. This is why I am delaying my decision to buy a home. It will be difficult to pay the EMIs of the new home even if we give our existing home on rent.Raviraj Burse, another city resident, said his family is trying to buy a flat in Deccan and Shivajinagar areas. "We were expecting a price range of Rs3 crore, but the prices have gone up by a couple of crores making it unaffordable to buy a home in the area. Lack of space in the core city areas has also contributed to the rise in the price. The only option is going into redevelopment projects but they are riddled with legal complexity thereby increasing the waiting time, he added.Yerwada resident Suraj Patidar said Pune might be affordable for people who are moving from Bengaluru, but for others buying a home in Pune now is out of reach. "Another option is to buy a home in far off areas, but it increases the commute time. I am trying to relocate from a rented flat to my own home. I, however, feel that I have missed the chance by delaying the decision by five years," he said."The rents are increasing by 10% every year and so are the prices of homes. In comparison, salary increments are meagre. With the current economic instability, the interest rates might increase again. Buying a home is a long-term debt. There will be fluctuations and buyers should be prepared to deal with them," Abhijit Patil, a resident of Chinchwad, said.

Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays, public holidays, and current gold rates and silver prices in your area.