Pune housing market experienced notable shifts in Q3 2024, reflecting broader national trends in residential real estate.
Sales in Pune, the second-highest among India’s top seven cities, saw a decline compared to the previous year, highlighting the impact of seasonality, high prices, and changing buyer preferences.
Pune recorded approximately 19,050 units sold in Q3 2024, marking a 17% drop compared to the 23,000 units sold in the same period last year. The city also saw a 10% decline in sales quarter-on-quarter.
Despite these decreases, Pune maintained its position as the second-highest sales market after the Mumbai Metropolitan Region (MMR), which sold around 36,190 units. Together, Pune and MMR contributed to 52% of the total housing sales across the top seven cities in India.
New Launches Plummet in Pune
The new supply in Pune also faced a significant contraction, with only 12,450 units launched in Q3 2024, reflecting a sharp 49% decline from the 24,300 units launched in Q3 2023.
This marks one of the steepest declines among the top cities, with the new supply also down by 34% compared to the previous quarter.
The majority (74%) of Pune’s new launches were in the mid and upper-mid segments, priced between ₹40 lakh to ₹1.5 crore, indicating strong focus on the mid-income homebuyer market. Affordable housing, typically a strong segment in Pune, saw its share dip further, reflecting broader market trends where the affordable segment's contribution across the top cities fell to just 13%.
Despite the drop in new launches, the inventory of unsold homes in Pune remained relatively healthy. The existing inventory in the city saw a modest decline, supported by robust absorption rates, with sales continuing to outpace new supply.
This aligns with the broader national trend where the top seven cities collectively saw inventory levels drop by 8% from 6.10 lakh units in Q3 2023 to 5.64 lakh units in Q3 2024.
Average residential prices in Pune experienced a moderate increase in Q3 2024 compared to the same period last year, contributing to the national trend of a 23% average price rise across the top seven cities.
While Pune’s price growth was less steep compared to Hyderabad’s 32% and Bengaluru and NCR’s 29%, the consistent uptick indicates sustained demand in key residential pockets of the city.
Anuj Puri, Chairman of ANAROCK Group, notes, "Pune’s housing market, like other major cities, is adjusting after a robust two-year period. The dip in sales during Q3 2024 reflects typical seasonal factors like the monsoon and the 'shraddha' period, when many homebuyers defer purchases.
However, the continued interest in mid and upper-mid segment housing indicates that the demand fundamentals remain strong."