Pune’s residential real estate market reported a 5% drop in sales in 2024, from 94,850 apartments sold in 2023 to 90,127 apartments sold in 2024, according to a research report by Gera Developments, a developer in Pune.
The report said that this is the second consecutive year that apartment sales have decreased in the residential segment of the Pune real estate market.
The report also noted that on an increased base, the average price across the city increased by 10.98% to an all-time high of โน6,590 per square foot. It noted that a drop in home sales seems to indicate a resistance at current price levels.
While the absolute number of homes sold continues to be high, the reduction in the total sales volume is something to be cautious about. Developers have responded by bringing fewer homes into the market over the last two years. A total of 1.03 lakh new homes were added in 2022. According to the report, this dropped to approximately 96,350 homes in 2023 and a further drop to approximately 91,400 homes in 2024, the report said.
On the other hand, though sales volume has decreased, the total sales value reached the โน75,019 crore mark in 2024, a 13% increase compared to โน66,680 crore in 2023. The growth was driven by larger-sized homes and higher price points.
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Larger apartments in demand
According to the report, the average apartment size of new projects launched grew by 43% over five years, reaching 1,261 sq ft in 2024. Apartments larger than 1,201 sq ft accounted for 35% of total sales in 2024, reflecting a preference for spacious homes.
The share of 3BHK units in new launches increased to 30% from 25% in 2023 and 10% in 2019. While the market share of 3 BHK has increased in Pune, the biggest casualty is the 1 BHK. The share of 1 BHK went down to 11.58% in 2024 from 14.73% in 2023. The report added that the market share of 1 BHK apartments was 49.10% in 2018.
โPuneโs real estate market reflects the dynamics of a classic boom cycle that began in 2020, with prices steadily climbing by 40% over the past five years. While the sector remains robust, the tapering of sales in 2023 and 2024 signals the need for cautious optimism. Normally, the steep increase in prices of homes (as we have seen) should also see strong home sales; however, a drop in home sales seems to indicate a resistance at current price levels,” Rohit Gera, Managing Director, Gera Developments Private Limited, said.
“The reduction in the new inventory added to the market by developers seems to have kept the market stable. Developers must prioritise a balanced approach to supply and pricing to ensure market stability. For home buyers, investing in projects by reputable developers with a proven track record and strong execution is the best approach in todayโs evolving market,โ Gera added.
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Average price of apartments doubled in 2024 compared to 2020
Further, the average price of apartments rose for the fifth consecutive year. On an already increased base, the average rates across the city increased by 10.98% to an all-time high of Rs. 6590 per sq ft from โน5,938 in 2023. According to the report, the average ticket size for new apartments doubled from โน41.37 Lakhs in 2020 to โน83.09 Lakhs in 2024.
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The unsold inventory available for sale in 2024 rose by 1.7% to 74,656 units, compared to 73,379 units in December 2023. The inventory overhang increased to 9.94 months, with the budget segment facing the highest overhang at 11.39 months.
