Mr. Rohit Gera, Managing Director,
Gera Developments releasing the 13th Gera Pune Residential Realty Report July
2024
KEY HIGHLIGHTS:
- Average home prices rose 8.92% in
the past year to an average of Rs 6,298 per sq ft in June 2024, a lifetime
high
- Rates increased 19.95% over 24
months and 28.06% over 36 months
- Projects under development grew
9.61% from a decadal low of 2,227 in June 2023
- The increased inventory and prices
have pushed the unsold inventory value to Rs 61,849Cr from Rs 49,423Cr
- Demand for larger homes persists.
Three-bedroom units account for 27% of new launches, reflecting a shift of
consumer preferences towards larger-sized homes.
- The PremiumPlus segment witnessed
the maximum price rise with a 5-year CAGR of 7.58%, reaching Rs 8,310 per
sq ft in June 2024
- Excess supply or inventory
(inventory overhang) improved in the Value and PremiumPlus segments, with
an overall market average of 9.68 months (from 8.7 months in June 2023)
- Yearly new launches increased by
5.8%, with PCMC accounting for 42%. Ready- and near-ready inventory is at
a 10-year low, with 3,384 apartments available, and constitutes 4.5% of
the total unsold inventory
- Home affordability is at 3.98x
annual income, empowering buyers to purchase from branded developers, and
pay a premium for reputation and track record
Pune | July 5,
2024: Gera Developments
Private Limited (GDPL), pioneers in Real Estate business, and award-winning
creators of premium residential and commercial projects in Pune, Goa, and
Bengaluru, released the July 2024 edition of their bi-annual report titled,
“The 13th Gera Pune Residential Realty Report”. It is
based on primary and proprietary research conducted by GDPL, and covers all
existing projects in a 30-km radius of the city centre. The report is an
outcome of over a decade of research, and is the longest-running, census-based
study of the residential markets of Pune.
According to the
latest edition of the report, for the period of Jan to June 2024, the rise
in home prices has
impacted affordability, but is driving buyers to more reputed developers. The
fall in Sales Volume, combined with the rise in Inventory Overhang has put a
slight pressure on sales momentum, indicating the need for a balanced approach towards the marketplace.
Between June 2023
and June 2024, the number of under-construction projects in Pune rose, as did
the average project size over the past decade. Projects under development show significant increase of 9.61% after a
10-year low in June 2023. As of Jun 2024, there are 3,12,748 apartments under
development across the Pune region. This is an increase of 2.65% over Jun 2023,
when the apartments under development amounted to 3,04,688 units. The average
size of projects has increased by 44% - from 89 apartments per project, up to
128 apartments per project, over the decade between Jun 2014 to Jun 2024.The data also points towards the continuing trend
of preference for larger homes, with developers launching homes sized at an
average of 1,238 sq ft.
Speaking on the
findings of The 13th Gera Pune
Residential Realty Report July 2024 edition, and the latest trends in Pune’s
residential real estate market, Mr. Rohit Gera, Managing Director, Gera
Developments Private Limited, said, “While the real estate market continues to show performance, the
increase in prices of homes by 8.92%, coupled with the increase in home sizes
driven by 1,400+ sq ft homes, is starting to affect customer
affordability. Affordability has gone down to 3.98x annual income while 5 years ago
affordability was 3.79x annual income in Jun 2020. Clearly, we are seeing
pressure on affordability though it’s nowhere close to the peak of 5.30 and
continues to remain good at present. This shows up in the sales volume having come down by 3.6% compared to
the last 12 months. The replacement ratio of 1.05 indicates that the quantum of
new supply is greater by 5% compared to sales.”
Mr. Gera further
added, “On the other hand, the preference for near-ready and ready inventory is
a sign that the market is leaning towards a low-risk delivery – a characteristic
of developers with a strong brand, also driving the capacity of reputable
developers to launch large projects. This reiterates the continued trend of
market consolidation. The increase in inventory overhang years from 8.7 months
from Jun 2023 to 9.7 months in Jun 2024 indicates a little pressure on overall
sales momentum throwing caution to the wind.”
Here are the key
highlights of the 13th Gera Pune
Residential Realty Report, encompassing trends from Jan 2024 to June 2024:
#1: Projects under
development surged by 9.61% since June 2023; Inventory Value now at Rs
61,849Cr.
#2: Inventory
Available for Sale increases by 7.3% to 75,598 units; highest growth in prices
of homes in new projects
#3: Highest growth
in prices of homes in new projects; homebuyers attracted most to PremiumPlus
segment
#4: Yearly new
launches increase by 5.8%; PCMC accounts for 42% of all new launches in Pune
#5: Units sized
1,000+ sq ft witness a 12% sales growth
#6: Consumer
preference for bigger developers with a strong brand continues
To conclude, sales
volume has also come down by 3.6% compared to the last 12 months. While the
Replacement Ratio stands at 1.05—indicating the quantum of new supply being
greater by 5% compared to sales—the Inventory Overhang has improved significantly in
the PremiumPlus (from 16.26 months in 2018 to 7.23 months in 2024) and Luxury
segments (from 20.59 months in 2018 to 10.22 months in 2024).
Prices continue
their stellar runup in the last 12 months impacting affordability to go down to
3.98x annual income. Although the pressure on affordability is nowhere close to
the peak of 5.30, homes continue to remain accessible to most buyers.
About The Gera Pune
Residential Realty Report:
The Gera Pune
Residential Realty Report is a bi-annual initiative by Gera Developments
Private Limited (GDPL) in its 13th year of
operation, aimed at garnering insights on both, the supply and demand sides of
the residential realty market in Pune. This longest-running, census-based study
uses a feet-on-street methodology of data gathering, and covers the Pune Urban
Agglomeration area. The data is validated, and statistically analysed. What
started as a knowledge-gathering initiative in 2011, has now become something
that realtors, IPCs, Research Houses, Brokerage Houses, and Banks &
Financial Institutions look forward to. Besides a broad overview of available
inventory, consumer affordability, and offtakes and prices, the report dives
deeper to mine insights by price segment, square footage, construction stage,
and size of unit.
About Gera
Developments Private Limited:
GDPL, a reputed
brand for over 50 years, is one of the pioneers of the Real Estate business in
Pune. Recognised as the creators of premium residential and commercial projects
in Pune, Goa, and Bengaluru, the brand has established a global presence
through developments in California, USA.
Please visit www.gera.in for more information
For further media
queries, please contact:
Sonia Kulkarni,
Hunk Golden and Media
Mobile: 9820184099 | Email: sonia.kulkarni@hunkgolden.in