Pune’s Rental Market Sees Significant Surge as Tenants Struggle with Rising Costs in IT Hubs and Premium Areas

Pune's Rental Market Sees Significant Surge as Tenants Struggle with Rising Costs in IT Hubs and Premium Areas
The rental market in Pune has seen a dramatic surge in recent years, leaving tenants grappling with steep increases in rent. A software engineer from Hadapsar expressed shock when his landlord proposed a 20% hike in rent compared to the previous year.
“Many of us in the IT sector prefer shorter lock-in periods due to frequent job changes or relocations. Unfortunately, this gives landlords the opportunity to impose substantial rent increases. Affordable housing is becoming harder to find,” he explained.
The term “affordable housing” has become a bitter joke among newcomers to Pune, who struggle to find reasonably priced rental options. The situation has worsened post-pandemic, as more people have returned to offices and schools.
A young professional shared her experience, saying, “During my student days in Pimpri-Chinchwad, I paid ₹10,000 for a single room. After starting my job, I found rents in Yerawada unaffordable and opted for a shared flat, which now costs me ₹15,000 per month.”
Reasons Behind the Spike
Real estate experts attribute the sharp rise in rents to factors such as infrastructure development, demand-supply imbalances, and the addition of modern amenities in new projects. On average, Pune has seen rent increases of 20-25% over the last three years.
Key areas like Hinjewadi, Kharadi, and Wakad, popular among IT professionals, have experienced rent hikes of 35-40% since 2021. A real estate consultant explained, “Kharadi has become particularly desirable due to its proximity to IT hubs and improved connectivity, driving up rents significantly.”
Other regions, such as NIBM Road, have seen increases of 20-25% over the past five years, largely due to ongoing commercial and infrastructure developments.
Tenants Seek Alternatives
Rising rents in premium areas are pushing tenants to consider more distant localities. A real estate broker from the Aundh-Pashan-Baner corridor noted, “Steep prices in central Pune are forcing people to move to areas like Bhugaon and Wagholi. The Pune Metro and new roads have also enhanced the appeal—and costs—of certain areas.”
A techie who returned to Pune last December was stunned by the rent escalation. “I used to live in Baner, but when I checked for flats in the same society, rents had nearly doubled. Some areas now have rents comparable to Mumbai suburbs,” she remarked.
Area-Wise Rent Hikes
- Wadgaon Sheri: 2BHK flats (800-900 sq. ft.) that rented for ₹20,000-22,000 two years ago now cost ₹28,000-30,000.
- Koregaon Park: Rents have increased by ₹15,000 over the past 2-3 years.
- Deccan: 2BHK apartments now cost ₹30,000-32,000 per month, compared to ₹20,000-22,000 a few years ago.
The continuous rise in rents has made it challenging for tenants to find affordable housing options, further highlighting the growing pressure on Pune’s rental market.