Mumbai: Pune’s real estate market reached a new milestone in 2024, with the average residential property price climbing to Rs 6,590 per square foot, reflecting an 11% increase over the previous year, according to the latest report by Gera Developments. Despite this significant price escalation, sales volumes dipped by 5%, with 90,127 units sold, indicating a complex dynamic between pricing and buyer behavior.
The data underscores a classic boom cycle in the city’s real estate sector. Over the past five years, property prices have soared by 40%, making Pune one of the fastest-growing real estate markets in the country. However, the decline in sales volumes over the past year suggests buyer resistance to elevated price levels. This trend signals a need for cautious optimism among industry stakeholders, who must now navigate the challenge of aligning supply and pricing with market expectations.
Experts attribute the rise in property prices to several factors, including the increased demand for larger homes, higher raw material costs, and the city’s burgeoning corporate activity, which has driven housing demand. Pune’s reputation as a hub for IT, education, and manufacturing, coupled with ongoing infrastructure projects like the Pune Metro and the proposed Ring Road, continues to make the city a magnet for professionals and families seeking quality living standards.
Affordability remains a critical driver for buyer decisions in Pune. While premium properties in areas like Koregaon Park and Kalyani Nagar remain highly sought after, emerging suburbs such as Wagholi, Hinjawadi, and Tathawade are becoming hotspots for affordable housing. These regions offer modern amenities and proximity to key employment hubs, attracting a wide range of buyers, from first-time homeowners to seasoned investors.
The report also highlights the need for developers to adopt a balanced approach in response to fluctuating market trends. As affordability becomes a growing concern for buyers, industry players must focus on innovative solutions such as offering flexible payment plans, launching mid-range housing projects, and leveraging sustainable construction practices to manage costs effectively.
While the real estate market in Pune continues to show resilience, the tapering sales volumes are a reminder of the delicate balance between demand and affordability. As the city’s housing sector evolves, maintaining this equilibrium will be crucial to sustaining long-term growth in one of India’s most dynamic property markets.
