The residential real estate segment gained significant momentum in the second half of 2021 in Pune. In a bid to meet the supply deficit in Pune’s residential realty market triggered by stalling projects due to the Covid-19 pandemic, developers together launched an unprecedented number of fresh units in the second half of 2021, suggests the Gera Pune Residential Realty Report. With some 61,151 new homes being added to the market in the last six6 months, 2021 saw a 48.5 per cent surge in the launch of new residential units as compared to the six6 months ended 2020.

Comparing the number of launches during the second half, the fresh supply went up by a considerable 61 per cent in thesix months ended December 2021 as compared to the same period in the previous year. On the other hand, the inventory available for sale was reduced to 71,778 units – down 2 per cent as compared to 2020. Interestingly, the inventory available for sale plunged to a seven-year low.

According to the report, many ongoing projects stood at 2,595 in December 2021. Gera Developments released the December 2021 edition of their bi-annual report, titled ‘The Gera Pune Residential Realty Report’. The report is an outcome of the longest-running, census-based study of the residential realty market of Pune. It is based on primary and proprietary research conducted by Gera Developments and covers all existing projects in a 30-km radius of the city centre.

Overall, the residential real estate market in Pune is in an upcycle and gathering momentum sequentially. Looking atthe yearly data of new launches by price segments, the biggest gains have been in the Premium Plus and Luxury segments. The Premium Plus segment is classified in the price range of ₹6,011 and ₹7,513 per square foot whereas the luxury segment is classified above ₹7,513 per square foot. Both these segments have seen new supply growing at 81 per cent and 53 per cent, respectively, in the past year.Explaining the overall trend in the market, Rohit Gera, managing director, Gera Developments, said, “Prices have continued their upward trend increasing by 5 per cent along with increasing sales and new supply. Higher sizes continue to do well highlighting not only the increased demand for bigger homes but also the commensurate increase in affordability. Affordability continues to increase and is now at 3.56 times annual salary”.

He added, “ However, going forward we could see oversupply in certain segments create challenges which market forceswill eventually correct as we have seen in the past. This risk of oversupply creating downward pressure on selling prices combined with the massive upward cost pressure on account of material prices will continue and pose challengesfor developers.”