Prabhat Road Tops Pune’s Real Estate Rates, Erandwane Commands Highest Flat Prices
Pune, 2nd April 2025: Prabhat Road has emerged as the most expensive locality in Pune for land prices, reaching ₹86,710 per square meter (₹8,056 per square foot), while Erandwane (west of Law College Road) now holds the highest residential flat rates at ₹1,80,950 per square meter (₹16,810 per square foot), as per the revised Ready Reckoner (RR) rates effective from April 2, 2025.
Rising Trends in Pune’s Property Market
The city has witnessed an average 4.2% hike in RR rates, with most residential and commercial localities seeing increases between 5% and 10%—a jump higher than Maharashtra’s overall rise of 3.89%.
Following Prabhat Road, the next four costliest locations in terms of land prices are:
Model Colony – ₹67,490 per square meter (₹6,270 per square foot)
Erandwane – ₹55,950 per square meter (₹5,198 per square foot)
Ghorpadi – ₹45,410 per square meter (₹4,219 per square foot)
Kothrud – ₹42,420 per square meter (₹3,941 per square foot)
Meanwhile, residential apartment prices have skyrocketed, with Koregaon Park securing the second spot at ₹1,79,490 per square meter (₹16,675 per square foot), followed by Prabhat Road (₹1,65,220 per square meter), Model Colony (₹1,46,190 per square meter), and Kothrud (₹1,21,540 per square meter).
10% Spike in Prime Localities, Some Areas Remain Unchanged
Several high-value areas—including Prabhat Road, Model Colony, Erandwane, and Kothrud—have seen a 10% rise in RR rates compared to the last revision in 2022-23. However, Ghorpadi has maintained stable prices, indicating varying market trends across the city.
At the lower end of the spectrum, Nandoshi (₹2,170 per square meter or ₹202 per square foot) and Kirkitwadi (₹2,680 per square meter or ₹249 per square foot) continue to have the most affordable land rates in Pune.
In commercial real estate, the stretch from Jungli Maharaj Road to Garware Island and Balgandharva Auditorium in Deccan has recorded rates of ₹1,30,850 per square meter (₹12,157 per square foot).
Expert Opinions: Concerns Over Market Impact
Officials from the town planning department have defended the rate revision, stating that meticulous transaction analysis guided the changes. “This time, we closely studied actual sales data and set the rates accordingly,” said Dhananjay Khot, Joint Director, Town Planning Department.
However, real estate developers have raised concerns, calling the city’s average rate hike misleading. “The overall increase may appear moderate, but in reality, most areas have seen a sharp 10% rise, which will directly impact buyers,” said Manish Jain, President, CREDAI Pune Metro.
Echoing similar concerns, Ranjit Naiknavare, Vice President of CREDAI National, warned of a ripple effect on property prices. “This hike will contribute to inflation in real estate and could ultimately reduce government revenue. The state was already witnessing a 20% year-on-year revenue increase without additional pricing pressure on homebuyers,” he explained.
Developers also pointed out that government restrictions prevent selling below RR rates, making properties less affordable. “If we sell below these rates, we face extra taxation, further straining developers and buyers alike,” Jain added.
Future Outlook
With the hike in RR rates affecting land acquisition, apartment pricing, and stamp duty costs, Pune’s real estate market is expected to experience notable shifts in pricing strategies, buyer interest, and overall affordability. Developers and buyers alike will be closely watching the next few months to assess the full impact of these revisions.
