Pune Realty Report: Rising Prices, Homebuyer Affordability at Stake
Pune, July 2024: Gera Developments Private Limited releases its 13th Pune Residential Realty Report, highlighting the impact of rising home prices on affordability and sales momentum.
Pune RealtyGera DevelopmentsResidential Real EstateHome PricesAffordabilitySales MomentumReal Estate PuneJul 09, 2024
The report also highlights the trend of consumers preferring near-ready and ready inventory, with a strong brand reputation. This has resulted in a shift towards larger developers, with projects selling over 500 units rising from 1 to 11 in the past year.
The number of under-construction projects in Pune has increased by 9.61% since June 2023, with the average project size increasing by 44% over the past decade. The total inventory value available for sale has also increased significantly by 25%, from Rs 49,423 crore in June 2023 to Rs 61,849 crore in June 2024.
The report further reveals that the PremiumPlus segment has experienced the highest price rise, with prices growing from Rs 6,205 per sq ft in June 2020 to Rs 8,310 per sq ft in June 2024. The segment holds the most appeal with buyers as it offers value for money.
New home launches have increased by 5.8% over the past 12 months, with the maximum quantum of new launches seen in the Budget segment. Zone-wise, the maximum increase is seen in Zone 3 (Sinhagad Road, Ambegaon, Narhe, Dhayari), where new launches have increased by 27%.
The report also highlights that units sized 1,000+ sq ft have witnessed a 12% sales growth, with the share of three bedrooms accounting for 27% in the overall new units launched, showing a preference for larger homes.
To conclude, while the real estate market continues to show performance, the increase in prices of homes 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. The replacement ratio of 1.05 indicates that the quantum of new supply is greater by 5% compared to sales, putting a slight pressure on overall sales momentum.
Gera Developments Private Limited (GDPL) is a pioneering real estate company in Pune, Goa, and Bengaluru, known for its premium residential and commercial projects. The company has released its 13th Pune Residential Realty Report, providing valuable insights into the Pune real estate market.
Information
The 13th Gera Pune Residential Realty Report is a bi-annual report that provides a comprehensive analysis of the Pune residential real estate market. The report is based on primary and proprietary research conducted by GDPL, covering all existing projects in a 30-km radius of the city centre.
Keywords Pune realty, Gera Developments, residential real estate, home prices, affordability, sales momentum, inventory overhang, replacement ratio.
FAQs
Q What is the average price of homes in Pune according to the 13th Gera Pune Residential Realty Report?
A The average price of homes in Pune has risen by 8.92% in the last 12 months, standing at Rs 6,298 per sq ft.
Q What is the impact of rising home prices on affordability?
A The increase in prices has led to a decline in affordability, with the average home price now standing at 3.98 times the average annual income.
Q What is the trend in terms of consumer preference for near-ready and ready inventory?
A Consumers are preferring near-ready and ready inventory, with a strong brand reputation, leading to a shift towards larger developers.
Q What is the growth rate of new home launches in Pune?
A New home launches have increased by 5.8% over the past 12 months.
Q What is the average size of projects in Pune?
A The average size of projects has increased by 44% over the past decade, from 89 apartments per project to 128 apartments per project.
Frequently Asked Questions
What is the average price of homes in Pune according to the 13th Gera Pune Residential Realty Report?
The average price of homes in Pune has risen by 8.92% in the last 12 months, standing at Rs 6,298 per sq ft.
What is the impact of rising home prices on affordability?
The increase in prices has led to a decline in affordability, with the average home price now standing at 3.98 times the average annual income.
What is the trend in terms of consumer preference for near-ready and ready inventory?
Consumers are preferring near-ready and ready inventory, with a strong brand reputation, leading to a shift towards larger developers.
What is the growth rate of new home launches in Pune?
New home launches have increased by 5.8% over the past 12 months.
What is the average size of projects in Pune?
The average size of projects has increased by 44% over the past decade, from 89 apartments per project to 128 apartments per project.
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