Home sales in IT-dominant areas slow down amid uncertainties

Time of India

05-08-2025

Pune: The western and eastern zones of Pune, popular among tech professionals and dominated by the IT industry, recorded a decline in home sales amid global trade uncertainty and rising prices.
Data from Credai Pune and CRE Matrix showed that the number of units sold in these zones dropped slightly to 15,845 in the first half of 2025, down from 16,372 units in the same period last year.
"The current situation in the IT sector in terms of jobs is very critical. Besides, the onslaught of US tariffs is adding to the problems," Kharadi resident Snehal Singh said.
The western zone stretches from Baner and Aundh to Hinjewadi and Wakad, while the eastern zone includes Yerawada, Vimannagar, Kalyaninagar and Kharadi.
These areas account for roughly 40-60% of total housing sales in the city, real estate industry insiders said.
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"Hinjewadi, Kharadi and Pimpri Chinchwad drive over 75% of total sales in the city. Average home values in Pune are up 27% in three years. Premium housing demand continues to surge, with sales of Rs 1 crore homes more than doubling," Manish Jain, president, Credai Pune, said.
The west zone's dominance in both supply and demand increased during the past few months, Knight Frank India said in a report.
Localities like Baner, Hinjewadi and Bavdhan continued to anchor development activity, accounting for 43% of the city's launches and 40% of sales from Jan to June. East Pune maintained a steady 25% share of launches and 22% in sales.
The overall impact on the home market was also on account of sticker price shock, Rohit Gera, MD, Gera Developments, said. "The average ticket prices of apartments in the city increased by 40% over the past five years, and the home size surged by 25%.
It will help the sector if the home sizes are reduced a bit. Then it will induce a given homebuyer with a fixed budget to book a flat while maintaining the current prices, bringing back the demand," he said.
Despite the dip in the number of units, sales grew in terms of value, indicating a demand for larger and costlier homes. Credai data showed that 2 BHKs in Baner, Balewadi, and Kharadi were costing upwards of Rs 1.2 crore, and 3 BHKs were costing above Rs 1.7 crore.
"The IT areas are also following the overall trend seen in the city and also in other metros. Housing had a good run after the pandemic and there is consolidation in this year. The larger homes are costlier making it difficult to get something in a smaller budget," Poonam Korde of Wakad said.
"Between Jan and March, west Pune saw a drop in sales, consistent with the broader trend, experienced decline in housing sales. This continued over the next three months, where sales in west and east Pune declined marginally," an Anarock report said.