Pune's Residential Real Estate Market Sees Record High Prices Amidst Slowing Sales
The average home price in Pune has surged by 8.92% to a record high of Rs 6,298 per sq ft, despite a decline in sales volume and inventory overhang.
Pune Real EstateResidential PropertyHome PricesSales VolumeInventory OverhangReal Estate PuneJul 09, 2024
Despite this growth, the market has seen a decline in sales volume, down 3.6% compared to the last 12 months. The Inventory Overhang, which measures the number of months required to sell the existing inventory, has improved in the PremiumPlus and Luxury segments, but remains a challenge. The Replacement Ratio, which indicates the quantum of new supply compared to sales, stands at 1.05, suggesting a slight pressure on sales momentum.
The report highlights that the number of under-construction projects in Pune has increased, with a significant rise of 9.61% over the past year. The average project size has also increased by 44% over the decade, with developers launching larger homes averaging 1,238 sq ft in size.
Rohit Gera, Managing Director, Gera Developments Private Limited, commented on the findings, saying, 'While the real estate market continues to perform, the increase in home prices, coupled with the increase in home sizes, is starting to affect customer affordability. Affordability has gone down to 3.98x annual income, which is a concern.'
Key highlights of the report include
Projects under development have surged by 9.61%, with 3,12,748 apartments being developed across the Pune region.
The total Inventory Value available for sale has increased by 25% to Rs 61,849 crore.
The average prices of homes across the city have risen by 8.92% in the last 12 months, driven by new projects, where prices have risen by 15.39%.
New home launches have risen by 5.8% over the past 12 months, totaling 99,166 units.
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Gera Developments Private Limited is a prominent real estate development company in Pune, known for its residential and commercial projects.
Gera Developments Private Limited is a leading real estate developer in Pune, committed to delivering quality projects that meet the needs of its customers.
Frequently Asked Questions
What is the current average home price in Pune?
The average home price in Pune is Rs 6,298 per sq ft as of June 2024.
How has the sales volume in Pune changed over the past year?
The sales volume in Pune has declined by 3.6% over the past year.
What is the Inventory Overhang in Pune's residential real estate market?
The Inventory Overhang in Pune's residential real estate market has improved in the PremiumPlus and Luxury segments, but remains a challenge.
How has the number of under-construction projects in Pune changed over the past year?
The number of under-construction projects in Pune has increased by 9.61% over the past year.
What is the average size of homes being launched in Pune?
The average size of homes being launched in Pune is 1,238 sq ft.
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