Pune Property Prices Reach New Heights: Report
Gera Developments' 13th Pune Residential Realty Report reveals a 8.92% increase in average home prices, rising to a lifetime high of Rs 6,298 per square foot.
Pune Property PricesGera DevelopmentsPune Residential Realty ReportReal Estate MarketHome PricesAffordabilityProperty TrendsReal Estate PuneJul 05, 2024
The report highlights that the number of under-construction projects in Pune has increased, with a significant rise of 9.61% after a 10-year low in June 2023. As of June 2024, there are 3,12,748 apartments under development across the Pune region, marking a 2.65% increase over June 2023.
The average size of projects has increased by 44% over the decade, with developers launching homes sized at an average of 1,238 sqft. The preference for larger homes is evident, with the 1,401+ sqft segment growing by 37% and now making up 21% of all sales.
Rohit Gera, managing director, Gera Developments Private Limited, notes that while the real estate market continues to show performance, the increase in prices of homes, coupled with the increase in home sizes, is starting to affect customer affordability. Affordability has gone down to 3.98x annual income, although it's nowhere close to the peak of 5.30 and continues to remain good at present.
The report also highlights the trend of market consolidation, with a preference for near-ready and ready inventory, indicating a low-risk delivery characteristic of developers with a strong brand. This has driven the capacity of reputable developers to launch large projects.
In terms of new launches, the budget segment (priced at Rs 5,081 per sqft or lower) saw a significant increase of 16.2%. Zone-wise, the maximum increase is seen in Zone 3 (Sinhagad Road, Ambegaon, Narhe, Dhayari), where new launches have increased by 27%.
Overall, the Pune real estate market is witnessing a shift towards larger projects, with a focus on reputed developers and a preference for bigger homes. While affordability is a concern, prices continue to remain accessible to most buyers.
Frequently Asked Questions
What is the current average home price in Pune?
The current average home price in Pune is Rs 6,298 per square foot.
How has the number of under-construction projects in Pune changed?
The number of under-construction projects in Pune has increased by 9.61% after a 10-year low in June 2023.
What is the average size of projects in Pune?
The average size of projects in Pune has increased by 44% over the decade, with developers launching homes sized at an average of 1,238 sqft.
How has affordability been impacted by the increase in home prices?
Affordability has gone down to 3.98x annual income, although it's nowhere close to the peak of 5.30 and continues to remain good at present.
What is the trend in terms of new launches in Pune?
The budget segment (priced at Rs 5,081 per sqft or lower) saw a significant increase of 16.2% in new launches.
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