Pune, January 09, 2025: Gera Developments Private Limited (GDPL), pioneers in premium residential and commercial real estate in Pune, Goa, Bengaluru, and California, today released the January 2025 edition of their bi-annual report, The Gera Pune Residential Realty Report. Pune’s first and only census-based report, it spans over 3 Lakh under-construction units and covers 2,300+ projects. With 14 years and 28 issues of circulation, this report provides in-depth insights into Pune’s residential real estate market, focusing on the sector’s performance from January–December 2024.

Market performance:

The rise in home prices continued for a 5th 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 sf.

There has been a slow down in sales as well as a reduction in the inventory brought to market by developers. The overall sales have dropped from 1.03 lakh homes sold in 2022 to approx 94,500 homes in 2023 and further down to approx 90,000 homes in 2024. 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 in less homes into the market over the last 2 years. A total of 1.03 lakh new homes were added in 2022. This dropped to approx 96,350 homes in 2023 and a further drop to approx 91,400 homes in 2024.

The year saw an increase in the inventory in the luxury segment. 5 years ago, (in 2019), 3 & 4 bedroom apartments constituted 6.2% of the market. In 2024, the 3 & 4 bedroom apartments constituted 34.15% of the market. Clearly, there has been a shift towards the larger homes. During this time, 1 bedroom homes went from a share of 49.10% down to 11.58%.

This was also evidenced in the average size of newly launched homes reaching 1,261 sq ft, offering a carpet area of 934 sq ft. This represents a 43% growth over five years, reflecting a clear preference for larger and more spacious homes, catering to modern lifestyle aspirations.

Commenting on the findings, Mr Rohit Gera, Managing Director, Gera Developments Private Limited, said, “Pune’s 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 & 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. The reduction in the new inventory added to the market by developers seems to have kept the market in a stable state.

Developers must prioritise a balanced approach to supply and pricing to ensure market stability. With stable interest rates and potential RBI interventions, affordability could see marginal improvements, but aligning price increases with inflation is crucial to sustaining steady demand. For homebuyers, investing in projects by reputable developers with a proven track record and strong execution is the best approach in today’s evolving market” he concluded.

The market’s replacement ratio remained stable at approximately 1 over the past three years, highlighting a balanced approach to new supply and sales. In 2024, the ratio stood at 0.97, showcasing that sales closely matched the introduction of new inventory, ensuring a healthy equilibrium.

The affordability index reached 4.04x, signifying ongoing demand despite evolving price dynamics. With robust growth in luxury sales, increasing home sizes, and a steady replacement ratio, Pune’s real estate market continues to present exciting opportunities for buyers and developers alike.

The report also highlighted significant trends:

1. Luxury segment growth:

• Units launched in the Luxury segment grew by 50%, from 5,753 in 2023 to 8,645 in 2024, now accounting for ~10% of all units launched.
• Of the 644 new projects launched in 2024, ~22% were in the Luxury segment, a significant rise from 4% in 2019.
• Sales volume in the Luxury segment increased by 14% to 6,807 units in 2024 compared to 5,971 units in 2023, highlighting the growing preference for premium homes.

2. Price surge:

• Average home prices increased by 10.98% in 2024, reaching Rs 6,590 per sq ft, the highest annual rise in the past decade.
• Luxury segment prices averaged Rs 13,027 per sq ft, while PremiumPlus and Value segments saw annual price increases of 10.9% and 11.8%, respectively.

3. Sales Decline and Inventory Overhang:

• Sales volume declined by 5% in 2024, with 90,127 units sold compared to 2023.
• Inventory overhang increased to 9.94 months, up from 9.31 months the previous year, marking the third consecutive year of rise.

4. Sales and inventory dynamics:

• Annual sales declined by 5% to 90,127 units in 2024 compared to 2023.
• Inventory available for sale rose by 1.7% to 74,656 units compared to 73,379 units in December 2023.
• Inventory overhang increased to 9.94 months, with the Budget segment facing the highest overhang at 11.39 months.

5. Affordability index:

• The affordability index rose to 4.04x in 2024 compared to 3.81x in 2023, highlighting affordability pressures.
• The average ticket size for new homes doubled from Rs 41.37 Lakhs in 2020 to Rs 83.09 Lakhs in 2024.

6. Larger homes in demand:

• The average home size of new projects launched grew by 43% over five years, reaching 1,261 sq ft in 2024.
• Homes 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%, further highlighting this trend.

7. Sales value growth:

• Total sales value reached ₹75,019 Cr in 2024, a 13% increase compared to ₹66,680 Cr in 2023. The growth was driven by larger-sized homes and higher price points.
• Over the last five years, sales value has grown at a CAGR of 18%.
• The total sales value increased by 13% year-on-year to Rs 75,019 Cr in 2024, driven by rising prices and larger unit sizes.

In the 14th edition, The Gera Pune Residential Realty Report provides an exhaustive analysis of the city’s real estate market, emphasising the need for developers to adopt prudent pricing strategies, and optimise inventory management to maintain stability. With rising prices and evolving buyer preferences for larger homes and premium living, Pune’s real estate market is at a pivotal juncture, requiring careful navigation to sustain its growth trajectory.

Mumbai, 9th January 2025: Spiralling residential prices notwithstanding, ultra-luxury homes (priced >INR 40 Cr each) continued to sell briskly in 2024. The number of sales as well as the sales value of such assets hit new peaks. ANAROCK data indicates that 2024 saw a 17% yearly surge in the total sales value of ultra-luxury homes against 2023.

Anuj Puri, Chairman – ANAROCK Group, says, “Overall, 59 ultra-luxury homes were sold across the top 7 cities in 2024, for a collective sales value of approx. INR 4,754 Cr. In contrast, 2023 saw 58 ultra-luxury homes sold in these cities for a total sales value of approx. INR 4,063 Cr. The yearly increase in both the number of deals and their overall sales value underscores the enduring demand for ultra-luxury properties across the top cities.”

Since the pandemic, there has been a significant increase in the demand for luxury and ultra-luxury properties.

“HNIs and ultra-HNIs are purchasing these trophy residences for personal use, investment, or both,” says Puri. “This is a noteworthy market dynamic, given that home prices are surging nationwide due to increased input costs and robust buyer demand. Although there was only a one-unit increase in the number of transactions closed in 2024 compared to 2023, there was a 17% annual increase in value during the same period. Some of the most prominent Grade A developers have been upping ultra-luxury inventory in response to the growing demand.”

Of at least 59 ultra-luxury properties sold across the top 7 cities in 2024, Mumbai saw 52 units sold at price tags of over INR 40 crore each – an 88% share of the total deals across the top cities. At least 3 separate ultra-luxury home deals worth >INR 40 crore each were closed in Delhi-NCR – two in Gurugram and one in New Delhi. Both Bengaluru and Hyderabad saw two deals each with price tags of over INR 40 Cr.

A deep dive shows that out of the 59 ultra-luxury homes sold in 2024, at least 17 were priced >INR 100 Cr each. The total value of these 17 homes sold alone was INR 2,344 Cr.

• Of the 52 deals in Mumbai City, at least 16 were at price tags above INR 100 crore each. Of these, 14 were apartments (Worli, Malabar Hill, and Pali Hill) and two bungalows at Cuffe Parade and JVPD.
• One ultra-luxury home priced >INR 100 Cr was sold in Gurugram in Delhi-NCR.

Apartments clearly remained the preferred property type for ultra-HNIs – of the 59 deals, 53 were for apartments and the remaining six bungalows.

Ultra-Luxury Homes – A 2022 & 2023 Retrospective

The COVID-19 pandemic generated a substantial demand surge for luxury and ultra-luxury housing, which shows no signs of slowing down. If we consider the collective data of 2022, 2023, and 2024, the top seven cities saw at least 130 ultra-luxury residential deals worth approx. INR 9,987 Cr. concluded.

• In 2022, 13 deals worth approx. INR 1,170 Cr were closed, of which at least 10 were for apartments and the remaining 3 for bungalows. Mumbai accounted for 11 deals and the remaining two were in Delhi-NCR. Interestingly, none of the remaining 5 top cities saw such large ticket-size deals in 2022. Of the 13 ultra-luxury homes sold in 2022, at least 9 units were priced between INR 100 – 150 Cr – all in Mumbai City.
• In 2023, 58 ultra-luxury homes (priced >INR 40 Cr) were sold across the top 7 cities with a cumulative sales value of approx. INR 4,063 Cr. Of these, Mumbai alone sold 53 units priced >INR 40 crore each – a 91% share of all such deals across the top 7 cities. At least four separate ultra-luxury homes worth >INR 40Cr each were sold in Delhi-NCR – two apartments in Gurgaon and two bungalows in New Delhi. Hyderabad saw one ultra-luxury deal worth >INR 40 Cr. In Jubilee Hills.