Pune has seen a significant surge in rental costs as employees and students return post-COVID-19 restrictions, coupled with infrastructural developments and a demand-supply imbalance. Rents have increased by 20-25% citywide over the last three years, making finding affordable housing a daunting task for many.
IT hubs like Hinjewadi and Kharadi have witnessed the steepest hikes, with rental rates soaring by 35-40% since 2021. Areas such as NIBM Road, Baner, Narhe, and Punawale have also experienced consistent rental growth, with some neighborhoods reporting rates comparable to Mumbai suburbs.
Examples of rent increases include a 2BHK in Wadgaon Sheri jumping from ₹20,000-22,000 two years ago to ₹28,000-30,000 now. In Koregaon Park, rents have risen by ₹15,000 over the last 2-3 years, while in Deccan, 2BHK rents have climbed to ₹30,000-32,000 from ₹20,000-22,000.
Factors driving the surge include the return of employees to offices and students to in-person classes, infrastructural developments like the Pune Metro, and a preference for shared housing to cut costs. Industry experts predict a stabilization in rents as new supply enters the market, but high demand in premium locations may keep rental prices elevated in sought-after neighborhoods.
The sharp rise in rents reflects Pune’s growth as a key employment and education hub, but has also created financial challenges for many residents. As the market stabilizes, stakeholders hope for a balance between demand and affordability to ensure Pune remains accessible to all.
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