While Pune's residential real estate market is preferred by value-seeking homebuyers, as against the premium and luxury-dominated market in neighbouring Mumbai, real estate observers say that more and more developers are seeking sales in the luxury category, priced Rs 3 crore-4 crore and higher.
Real estate observers in the city added that an optimum mix of technology, financial services and manufacturing job profiles in the city has helped drive sales, with the profile widening from the earlier luxury homebuying base of high networth individuals and non-resident Indians.
Observers also added that unlike earlier, the new supply of luxury homes is coming in not just in the upmarket neighbourhoods of Koregaon Park, Kalyani Nagar, and Baner, but also in the relative outskirts, such as NIBM Road in Kondhwa, and some in the technology hub of Hinjawadi.
Developers have cited improved connectivity to job centres in Pune, through new and widened roads, such as the Pune Ring Road, as well as the Pune Metro, as driving sales and new supply in the luxury ticket size.
"With the rapid emergence of the city as a leading IT and business hub coupled with large-scale infrastructure developments, we are witnessing an evolving lifestyle preference and a strong affinity for homeownership fuelling the demand for luxury homes in Pune. Educational centres and expanding commercial developments have further boosted demand for luxury residences...Enhanced road networks, metro expansion, and proximity to social infrastructure continue to add value to these locations," said Subhashish Pattanaik, Chief Executive Officer, west and east zone, Godrej Properties.
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According to a report from real estate consultants CBRE, 825 luxury apartments were sold in Pune during 2024, significantly higher than the 400 luxury apartments sold the year before. However, only 295 units of supply were launched in 2024, compared to 390 units in 2023, as developers continue to firm up their launch and business development plans in the sector.
The luxury real estate market in Pune was earlier dominated by local Grade-A players, such as Panchshil Realty, which built the Trump Tower in collaboration with Tribeca Developers and The Trump Organisation in the Kalyani Nagar neighbourhood.
Now, other large developers, including listed and large players, have concluded development deals, or have been exploring residential projects in the Pune market. Those include Godrej Properties, Birla Estates, Rustomjee, Tribeca, K Raheja Corp, Macrotech (Lodha) and others, while many large local developers have been actively exploring land deals for projects in the Rs 3 crore-4 crore category and higher.
While Birla Estates has focused on the core city, preparing to launch a project on the arterial Wellesley Road in Sangamwadi, Godrej Properties and K Raheja Corp have looked on the outskirts as well, such as in Hinjawadi and Kondhwa.
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"With modern infrastructure, seamless connectivity, and a high quality of life at a more affordable cost than Mumbai, the city is fast emerging as a prime residential destination. Major infrastructural developments —such as the Pune Metro and the Ring Road expansion—have further fuelled the demand, as reflected through the surge in property registrations over the last few quarters," said K T Jithendran, Managing Director and CEO of Birla Estates.
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