Real estate market of Pune sluggish as demand has softened: Report

Indian Express

12-07-2025

The bi-annual report recently released by The Gera Developments Private imited (GDPL) highlights that after seven years of consistent growth in prices, sales and supply, the market is experiencing a consolidation phase driven by 'sticker shock', the cumulative effect of rising prices and increasing home sizes.
The Gera Pune Residential Realty Report says, 'While prices rose at a moderate 7.31% year-on-year, this still added significantly to total ticket sizes. Over the past five years, prices have climbed by 40% and average home sizes by 25%, resulting in an overall 76% increase in the average sticker price. Consequently, buyers in the Budget and Upper-mid segments are facing affordability challenges, while affluent buyers are gravitating towards larger, more comfortable homes.'
Speaking about the market shifts at a press conference in the city, Rohit Gera, Managing Director, Gera Developments Private Limited, said, 'We are witnessing the market respond to a steep escalation in total ticket size, what we're calling Sticker Shock. Even though interest rates have come down over the last 6 months, affordability remains a concern as the total outgo for buyers has increased by 76 per cent over five years. The steep increase in sticker price has led to sticker shock and has caused people to slow down their purchase decision, resulting in the demand softening.'
Gera added, 'Developers are responding cautiously by slowing new launches and recalibrating configurations. I expect smaller home sizes to return to the market, making homes more affordable not through pricing corrections but by offering compact yet efficient layouts. For buyers, this is a critical time – choosing projects by developers with strong financial stability is more important than ever.'
As per the report, prices of new projects launched are down by 4.73 per cent over the last year, while the overall market is still on an uptrend. East Pune recorded the highest price appreciation across the city marking a 9.6 per cent growth followed by West Pune which saw a 6.8 per cent appreciation.
Currently Pune has 2,605 residential projects under development, up by 6.7% since June 2024. However, the market is consolidating, small projects (<100 units) fell 39% since 2018, while large projects (>500 units) surged by 70%, the report said
Areas such as Hinjewadi, connected by the new Metro corridors, have seen stable pricing and increased traction from affordability-focused buyers.
'Pune's real estate market is entering a phase of strategic recalibration,' the report added.