Pune and PCMC Elections: Why They Matter for Real Estate

Anil Pharande

The ongoing Pune and Pimpri-Chinchwad Municipal (PCMC) elections are about more than politics. They will determine the future of infrastructure, affordable housing, and livability. Millions of people are moving to these cities for jobs, homes, and better quality of life. At the same time, the Union Budget 2026 is expected to address urban infrastructure and affordable housing priorities. Decisions made now will shape Pune and PCMC for years to come.

Infrastructure Deadlock Threatens Growth

Despite rapid urbanisation, infrastructure in Pune and PCMC is lagging. Areas like Hinjawadi still face severe waterlogging due to blocked water channels and unauthorised construction. Other zones, including Kalas-Dhanori-Lohegaon, Yerawada-Gandhinagar, and Keshavnagar-Manjari, struggle with traffic congestion, narrow roads, and water shortages.

Flood-line restrictions prevent redevelopment of old housing societies, leaving land for schools, hospitals, and sports facilities unused. Wakad, Punawale, and Tathawade still suffer from inadequate road networks, even decades after becoming part of PCMC. Without decisive action, infrastructure problems will continue to affect property values and quality of life.

Affordable Housing Shortage

There is a stark mismatch between what developers build and what citizens need. ANAROCK data shows that affordable housing (under Rs 40 lakh) now accounts for only 18% of Pune’s housing sales, down from 37% in 2021. Meanwhile, premium homes above Rs 1 crore have grown fivefold.

Knight Frank India reports the supply-to-demand ratio for affordable homes has dropped from 1.05 in 2019 to just 0.36 in 2025. Three people now compete for every affordable home available. This shortage is creating affordability issues and widening the gap between housing demand and supply in Pune and PCMC.

Civic Leadership: The Key to Change

Local authorities play a crucial role in infrastructure projects. Approvals, budgets, and coordination between departments affect project timelines.

Projects like the Katraj-Kondhwa road widening and the Old Mumbai-Pune Highway improvements depend on strong local leadership. Citizens vote for leaders who can complete infrastructure on time. Without it, even premium real estate loses value if connectivity, drainage, and water supply remain poor.

What the Union Budget Can Do

The upcoming Union Budget 2026 could reshape Pune’s real estate market. Key industry demands include:

• Tax relief for homebuyers: Raising the Section 24(b) interest deduction limit from Rs 2 lakh to Rs 5 lakh.
• Interest subsidies for first-time buyers: Helping young working professionals afford EMIs.
• Broadened definition of affordable housing: Raising the limit to Rs 75–80 lakh in Tier 1 cities.
• Urban infrastructure investment: Funding better roads, drainage, water systems, and public transport.
• Streamlined approvals: Implementing a Single Window Clearance System and reasonable GST on under-construction homes.

These measures can boost demand, support developers, and improve livability in Pune and PCMC.

Why This Matters to Residents and Investors

For residents, affordable housing and functional infrastructure determine quality of life. For investors, infrastructure projects and affordable housing policies impact property values and ROI.

The choices made by elected corporators and the government in the next budget will influence:

• Housing availability and pricing
• Property investment potential
• Accessibility and commuting convenience
• Overall city livability

Pune’s real estate market depends on coordinated action between local leadership and national policy. Elections and budget announcements are pivotal for shaping the city’s future.

Anil Pharande is Chairman, Pharande Spaces