KEY POINTS:
• Median house prices rose 8.92% last year to average Rs 6,298 per sq ft in June 2024, an all-time high
• Rates increased 19.95% in 24 months and 28.06% in 36 months.• Projects in development grew 9.61% from a decade low of 2,227 in June 2023.
• Rising inventory and prices have raised the value of unsold inventory to Rs 61,849 Cr from Rs 49,423 Cr.
• Demand for larger homes persists. Three-bedroom units account for 27% of new launches, reflecting a shift in consumer preferences towards larger-sized homes.• The PremiumPlus segment witnessed the maximum price increase with a five-year CAGR of 7 .58%, reaching Rs 8,310 per square foot in June 2024.
• Oversupply or inventory (excess inventory) improved in the Value and PremiumPlus segments, with an overall market average of 9.68 months (from 8.7 months in June 2023)
• Annual new launches increased 5.8%, with PCMC accounting for 42%. Ready and near-ready inventory is at its lowest level in 10 years, with 3,384 apartments available and making up 4.5% of total unsold inventory.• Housing affordability is 3.98 times annual income, allowing buyers to buy from brand name developers and pay a premium for reputation and track record.
Pune | July 5, 2024: Gera Developments Private Limited (GDPL), pioneers in the real estate business and award-winning creators of premium residential and commercial projects in Pune, Goa and Bengaluru, released the July 2024 edition of its bi-annual report titled, “The 13th Gera Pune Residential Real Estate Report.” It is based on primary and proprietary research carried out by GDPL and covers all existing projects within a 30 km radius of the city centre. The report is the result of more than a decade of research and is the longest-running census study on Pune's residential markets.
According to the latest edition of the report, for the period January to June 2024, rising house prices have affected affordability but are driving buyers towards more reputable developers. Falling sales volume, combined with rising excess inventory, has put slight pressure on sales momentum, indicating the need for a balanced approach to the market.Between June 2023 and June 2024, The number of projects under construction in Pune has increased, as has the average size of projects over the last decade. Projects under development show a significant increase of 9.61% after a 10-year low in June 2023. As of June 2024, there are 3,12,748 apartments under development across the Pune region. This is an increase of 2.65% compared to June 2023, when apartments under development amounted to 3,04,688 units. The average project size has increased by 44%, from 89 apartments per project to 128 apartments per project, during the decade between June 2014 and June 2024. The data also points to the continued trend of preference for larger homes, with developers launching homes with an average size of 1,238 square feet.
Speaking on the findings of the July 2024 edition of the 13th Gera Pune Residential Real Estate Report and the latest trends in the Pune 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 home prices by 8.92%, along with the increase in home sizes driven by homes larger than 1,400 square feet, is beginning to affect customer affordability. Affordability has dropped to 3.98 times annual income, while 5 years ago affordability was 3.79 times annual income in June 2020. Clearly, we are seeing pressure on affordability, although it is nowhere near the peak of 5.30 and continues to be good today. This is reflected in the fact that sales volume has decreased by 3.6% compared to the last 12 months. The replacement rate of 1.05 indicates that the amount of new supply is 5% higher 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 low-risk delivery, a characteristic of developers with a strong brand, which also boosts the ability of renowned developers to launch large projects. This reiterates the continued trend of market consolidation. The increase in excess inventory years from 8.7 months from June 2023 to 9.7 months in June 2024 indicates little pressure on overall sales momentum, throwing caution to the wind. Highlights from the 13th Gera Pune Residential Real Estate Report, covering trends from January 2024 to June 2024:
#1: Projects in development increased by 9.61% from June 2023; Inventory value now at Rs 61,849Cr.
#2: Inventory available for sale increases 7.3% to 75,598 units; Higher home price growth in new projects.#3: Higher home price growth in new projects; Home buyers were most attracted to the PremiumPlus segment
#4: Annual new launches increase 5.8%; PCMC accounts for 42% of all new launches in Pune
#5: Units larger than 1,000 square feet witness 12% sales growth #6: Consumer preference for larger developers with a strong brand continues
In conclusion, sales volume has also decreased by 3.6% compared to the last 12 months. While the replacement ratio stands at 1.05, indicating that the amount of new supply is 5% higher compared to sales, excess inventory has improved significantly in the PremiumPlus segments (from 16.26 months in 2018 to 7.23 months in 2024) and luxury (from 20.59). months in 2018 to 10.22 months in 2024).
Prices continue their stellar rise over the past 12 months, impacting affordability to fall to 3.98 times annual income. Although the pressure on affordability is nowhere near the 5.30 peak, homes remain affordable for most buyers.About Gera Pune Residential Real Estate Report:
The Gera Pune Residential Real Estate Report is a bi-annual initiative by Gera Developments Private Limited (GDPL) in its 13th year of operation, which aims to gain insights into the supply and demand sides of the residential real estate market in Pune . This longer census study uses a feet-on-street data collection methodology and covers the Pune urban agglomeration area. The data is validated and analyzed statistically. What started as a knowledge gathering initiative in 2011 has now become something that real estate agents, IPCs, research houses, brokerage houses and banks and financial institutions look forward to. In addition to a broad overview of available inventory, consumer affordability, and purchasing and pricing, the report delves deeper into extracting information by price segment, square footage, construction stage, and unit size.
About Gera Developments Private Limited:GDPL, a renowned brand for over 50 years, is one of the pioneers of the real estate business in Pune. Recognized as a creator of premium residential and commercial projects in Pune, Goa and Bengaluru, the brand has established a global presence through developments in California, USA.
Visit www.gera.in for more information.
For further media inquiries, please contact: Sonia Kulkarni, Hunk Golden and Media
Mobile: 9820184099 | Email: [email protected]
(Disclaimer: The above press release is provided by HT Syndication and will not assume any editorial responsibility for this content.)
• Median house prices rose 8.92% last year to average Rs 6,298 per sq ft in June 2024, an all-time high
• Rates increased 19.95% in 24 months and 28.06% in 36 months.• Projects in development grew 9.61% from a decade low of 2,227 in June 2023.
• Rising inventory and prices have raised the value of unsold inventory to Rs 61,849 Cr from Rs 49,423 Cr.
• Demand for larger homes persists. Three-bedroom units account for 27% of new launches, reflecting a shift in consumer preferences towards larger-sized homes.• The PremiumPlus segment witnessed the maximum price increase with a five-year CAGR of 7 .58%, reaching Rs 8,310 per square foot in June 2024.
• Oversupply or inventory (excess inventory) improved in the Value and PremiumPlus segments, with an overall market average of 9.68 months (from 8.7 months in June 2023)
• Annual new launches increased 5.8%, with PCMC accounting for 42%. Ready and near-ready inventory is at its lowest level in 10 years, with 3,384 apartments available and making up 4.5% of total unsold inventory.• Housing affordability is 3.98 times annual income, allowing buyers to buy from brand name developers and pay a premium for reputation and track record.
Pune | July 5, 2024: Gera Developments Private Limited (GDPL), pioneers in the real estate business and award-winning creators of premium residential and commercial projects in Pune, Goa and Bengaluru, released the July 2024 edition of its bi-annual report titled, “The 13th Gera Pune Residential Real Estate Report.” It is based on primary and proprietary research carried out by GDPL and covers all existing projects within a 30 km radius of the city centre. The report is the result of more than a decade of research and is the longest-running census study on Pune's residential markets.
According to the latest edition of the report, for the period January to June 2024, rising house prices have affected affordability but are driving buyers towards more reputable developers. Falling sales volume, combined with rising excess inventory, has put slight pressure on sales momentum, indicating the need for a balanced approach to the market.Between June 2023 and June 2024, The number of projects under construction in Pune has increased, as has the average size of projects over the last decade. Projects under development show a significant increase of 9.61% after a 10-year low in June 2023. As of June 2024, there are 3,12,748 apartments under development across the Pune region. This is an increase of 2.65% compared to June 2023, when apartments under development amounted to 3,04,688 units. The average project size has increased by 44%, from 89 apartments per project to 128 apartments per project, during the decade between June 2014 and June 2024. The data also points to the continued trend of preference for larger homes, with developers launching homes with an average size of 1,238 square feet.
Speaking on the findings of the July 2024 edition of the 13th Gera Pune Residential Real Estate Report and the latest trends in the Pune 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 home prices by 8.92%, along with the increase in home sizes driven by homes larger than 1,400 square feet, is beginning to affect customer affordability. Affordability has dropped to 3.98 times annual income, while 5 years ago affordability was 3.79 times annual income in June 2020. Clearly, we are seeing pressure on affordability, although it is nowhere near the peak of 5.30 and continues to be good today. This is reflected in the fact that sales volume has decreased by 3.6% compared to the last 12 months. The replacement rate of 1.05 indicates that the amount of new supply is 5% higher 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 low-risk delivery, a characteristic of developers with a strong brand, which also boosts the ability of renowned developers to launch large projects. This reiterates the continued trend of market consolidation. The increase in excess inventory years from 8.7 months from June 2023 to 9.7 months in June 2024 indicates little pressure on overall sales momentum, throwing caution to the wind. Highlights from the 13th Gera Pune Residential Real Estate Report, covering trends from January 2024 to June 2024:
#1: Projects in development increased by 9.61% from June 2023; Inventory value now at Rs 61,849Cr.
#2: Inventory available for sale increases 7.3% to 75,598 units; Higher home price growth in new projects.#3: Higher home price growth in new projects; Home buyers were most attracted to the PremiumPlus segment
#4: Annual new launches increase 5.8%; PCMC accounts for 42% of all new launches in Pune
#5: Units larger than 1,000 square feet witness 12% sales growth #6: Consumer preference for larger developers with a strong brand continues
In conclusion, sales volume has also decreased by 3.6% compared to the last 12 months. While the replacement ratio stands at 1.05, indicating that the amount of new supply is 5% higher compared to sales, excess inventory has improved significantly in the PremiumPlus segments (from 16.26 months in 2018 to 7.23 months in 2024) and luxury (from 20.59). months in 2018 to 10.22 months in 2024).
Prices continue their stellar rise over the past 12 months, impacting affordability to fall to 3.98 times annual income. Although the pressure on affordability is nowhere near the 5.30 peak, homes remain affordable for most buyers.About Gera Pune Residential Real Estate Report:
The Gera Pune Residential Real Estate Report is a bi-annual initiative by Gera Developments Private Limited (GDPL) in its 13th year of operation, which aims to gain insights into the supply and demand sides of the residential real estate market in Pune . This longer census study uses a feet-on-street data collection methodology and covers the Pune urban agglomeration area. The data is validated and analyzed statistically. What started as a knowledge gathering initiative in 2011 has now become something that real estate agents, IPCs, research houses, brokerage houses and banks and financial institutions look forward to. In addition to a broad overview of available inventory, consumer affordability, and purchasing and pricing, the report delves deeper into extracting information by price segment, square footage, construction stage, and unit size.
About Gera Developments Private Limited:GDPL, a renowned brand for over 50 years, is one of the pioneers of the real estate business in Pune. Recognized as a creator of premium residential and commercial projects in Pune, Goa and Bengaluru, the brand has established a global presence through developments in California, USA.
Visit www.gera.in for more information.
For further media inquiries, please contact: Sonia Kulkarni, Hunk Golden and Media
Mobile: 9820184099 | Email: [email protected]
(Disclaimer: The above press release is provided by HT Syndication and will not assume any editorial responsibility for this content.)
