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.
About Gera Developments Private
Limited:
Gera Developments Private Limited, 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. Gera prides itself on
providing long-term enjoyment to customers, by having a distinct customer-first
approach. The philosophy at Gera of “Let’s Outdo” rests on the trinity of
Innovation, Transparency, and Enhanced Customer Experience. It is at the heart
of Gera’s effort to infuse innovation and transparency in Real Estate and home
building, with an unwavering focus on meeting the shifting lifestyle dynamics
of their customers, while upholding the premium living experience. Accordingly,
there are many ‘firsts’ that stand to Gera’s credit.
The company introduced a 5-Year
Warranty on Real Estate, consisting of Preventive Maintenance & Repairs and
provision of insurance on buildings way back in 2004 for the first time in
India. RERA mandated the same only in 2017. Gera also introduced India’s first
and only 7-year warranty in Real Estate. They have designed and launched a
pathbreaking concept, the award-winning ChildCentric® Homes, which
revolutionised the Real Estate sector for both, the developer and the home
buyer. Other revolutionary and highly successful product lines have been
IntelliplexesTM, SkyVillasTM, and The Imperium series. In their 50th year, the
company launched yet another first-of-its-kind industry initiative—Gera’s Home
Equity Power—by providing financial flexibility to customers to withdraw funds
from their prior payments to meet financial emergencies.
These products are matched by the
services of the GeraWorld® Mobile App, which brings speed, convenience, and
transparency to the buyer, enhancing customer experience. Gera Developments has
also launched the Club Outdo initiative, a tech-driven loyalty and referral
program that provides multiple benefits, offers, and community engagement
opportunities to existing and new customers.
The company emphasises delivering
value-added experiences to customers, with projects designed around the
evolving needs of their customers. Driven by trust, quality, a customer-first
mindset, and innovation, the brand has won several national and international
awards on both, the product and service fronts.
Gera continues to be ranked amongst
the Top 50 Great Mid-Size WorkplacesTM 2024 in India by the Great Place to
Work® (GPTW) Institute for seven years in a row. This year, we have also been
proudly recognised as one of India’s Best WorkplacesTM in Real Estate Industry
and India’s Best WorkplacesTM in Building a Culture of Innovation for All.
Gera envisions raising the standards
of Real Estate in India. As they redefine new standards of service orientation,
product innovation, real estate marketing, and brand building, they are
consistently generating fresh value for its stakeholders, while setting new
benchmarks for the industry.
Please
visit www.gera.in
For
further media queries,
Sonia
Kulkarni, Hunk Golden and Media
Mobile:
9820184099 | Email: sonia.kulkarni@hunkgolden.in