The trap. Kalyani Nagar is down 2.62% and Kharadi is up 1.67%, and the obvious reading is that one is cheap and one is expensive. That reading assumes both numbers describe the same kind of market. They do not.
Kharadi's average moves on a large, liquid pool of broadly comparable apartments. Kalyani Nagar's average moves on a small pool containing villas, low-rise floors and ageing 1990s stock, where a change in what happens to be listed can shift the average by more than the market actually moved. A 2.62% fall in a thin, heterogeneous market is not the same information as a 2.62% fall in a deep, homogeneous one.
What to do instead. In Kharadi, the locality average is a usable starting point. In Kalyani Nagar it is close to useless for pricing a specific unit — you need comparable transactions in that building or that pocket, and if nobody will give you those, that itself tells you something about the liquidity.
What would change this comparison. Physical construction starting on the Kharadi metro station would begin to close the connectivity gap and is the single event most likely to shift the balance. A sustained recovery in Kalyani Nagar rents would improve a yield case that is currently the weakest of the five Pune markets I cover.
