Residential Housing Market in Pune
Growth Opportunities in Pune’s Real Estate Market
Pune has been growing rapidly in the real estate sector over the last 15 years, driven by its position as a major IT and education hub. This growth is consistent year on year, with IT professionals being the primary homebuyers. The market is adapting to cater to their needs and demands.
In recent years, the city has seen an increase in premium and larger home projects compared to affordable housing.
Market Trends
Despite a 5% decline in unit sales, there has been a 13% increase in sales value. In 2024, 90,127 units were sold, a decline from 94,850 units in the previous year. However, the total sales value increased due to the rising demand for larger homes and higher price points.
Price Trends
The average price of residential apartments rose by 10.98% in 2024, reaching an all-time high of ₹6,590 per square foot, compared to ₹5,938 per square foot in 2023. Over the last five years, housing prices have climbed by 40%, reflecting a sustained upward trend in the market. Additionally, the average ticket size of apartments has doubled from ₹41.37 lakhs in 2020 to ₹83.09 lakhs in 2024.
Sales and New Launches
The sale volume dropped from 1.03 lakh units in 2022 to 90,127 units in 2024.
Demand Shift
In recent years, larger homes have gained popularity. Apartments larger than 1,200 square feet accounted for 35% of total sales in 2024. The average size of new apartments launched has increased by 43% over the last five years, reaching 1,261 square feet in 2024.
3 BHK apartments saw an increase in market share, comprising 30% of new launches in 2024, compared to 25% in 2023 and 10% in 2019. Conversely, the share of 1 BHK apartments dropped to 11.58% in 2024, down from 14.73% in 2023 and a staggering 49.10% in 2018.
In conclusion, the demand for premium, larger apartments has increased compared to affordable housing. However, rising prices have led to a 5% decline in total unit sales. Homebuilders need to strike a balance between pricing and supply to maintain stability in the market.
Future Infrastructure Developments
Upcoming infrastructure developments in Pune are expected to further boost the housing market.
Pune Metro: The Pune Metro project is expected to be fully operational by 2027, which will enhance connectivity and help address the city’s traffic problems.
Pune International Airport: The expansion of Pune International Airport will lead to higher real estate demand in the surrounding areas.
Ring Road: The New Ring Road, connecting the Pune-Mumbai Expressway, Nashik Road, Solapur Road, Pune-Bangalore Road, and other highways, is expected to be a key game-changer. This ring road passes through major areas like Hinjawadi, Kharadi, Baner, Pimpri-Chinchwad, Wagholi, Hadapsar, and Dhanori. These areas are expected to see major demand in the future.