Key Highlights:
● Sales rebound: Residential sales grew 7% year-on-year, rising from 86,666 units in June 2025 to 92,341 units in June 2026 — the first annual recovery after three consecutive years of decline.
● Supply outpaces demand: New launches surged 14%, from 88,941 units to 101,085 units — nearly double the pace of the sales recovery.
● Price growth cools: Average prices rose 4.8% to a record ₹7,082 per sq. ft. Prices are still rising, but the pace of increase has slowed by roughly a third, down from 7.3% growth a year ago.
● Unsold inventory value hits an all-time high: The value of unsold stock jumped 28% to ₹92,110 crore, the highest ever recorded.
● Inventory overhang rises: Overhang increased to 11.3 months from 10.8 months, with the replacement ratio at 1.09 — confirming that supply is growing faster than sales.
● Affordability improves for a third straight half-year: The affordability index eased to 3.94x annual income from 3.98x, as salary growth outpaced home price growth for the first time in five years.
● Homes get bigger: Average home size hit a record 1,275 sq. ft. The 1,401–1,600 sq. ft. band grew 33%, while compact 600–800 sq. ft. homes fell 19%.
● Stress concentrated in Premium Plus: Inventory overhang in the Premium Plus segment reached 13.5 months, the highest in the city, while Budget homes remained the tightest at 10.1 months.
This year's edition captures a market at an inflection point. After three years of declining sales, Pune's residential real estate market staged a recovery, with offtake rising 7% to 92,341 units in the 12 months ended June 2026 — the first clear rebound after three soft cycles. However, the shape of this recovery matters as much as its scale: it was led almost entirely by mid- and large-format homes. The 1,401–1,600 sq. ft. band grew by a third and the 1,201–1,400 sq. ft. band rose 17%, while the 600–800 sq. ft. segment — long the market's volume backbone — fell 19% for the seventh consecutive year. The upgrader, rather than the first-time buyer, is driving this cycle.
Developers have responded to the demand revival with considerable conviction. New launches climbed 14% to 101,085 units, outpacing the sales recovery and pushing the replacement ratio to 1.09 — meaning more homes are being added to the market than are being sold. The clearest expression of this imbalance is the value of unsold inventory, which rose 28% to an all-time high of ₹92,110 crore. Inventory overhang across the city rose to 11.3 months from 10.8 months a year ago, with the strain concentrated in the Premium Plus segment, where overhang reached 13.5 months — the highest of any price band — while Budget homes remained the tightest at 10.1 months.
Even as inventory built up, price growth moderated meaningfully. The city-wide average rate touched a record ₹7,082 per sq. ft., but grew just 4.8% year-on-year, down from 7.3% growth in the previous year — meaning prices are now rising roughly a third more slowly than they were a year ago. This cooling in prices, combined with income growth of approximately 5.9%, allowed the affordability index to improve for the third consecutive half-year, easing to 3.94 times annual income from 3.98x a year earlier. This marks the first time in five years that salary growth has outpaced the rise in home prices — a meaningful shift for the salaried home buyer.
Speaking about the findings, Mr Rohit Gera, Managing Director, Gera Developments Private Limited, said:“After three years of slowing sales, we are finally seeing the market turn a corner. Home sales are up 7% year-on-year, and importantly, this recovery has come even as price growth eased to 4.8% from 7.3% a year ago — proof that a moderation in price increases, rather than discounting, is what's bringing buyers back. At the same time, the market is undergoing a clear structural shift in buyer preferences. Demand has steadily moved away from smaller homes towards larger formats over the past few years. While homes up to 1,000 sq. ft. have witnessed a sharp decline in sales, larger homes above 1,400 sq. ft. have recorded the strongest growth, indicating that today's market is increasingly being driven by upgraders rather than first-time homebuyers. However, developers have responded to this recovery with considerable enthusiasm; new launches are up 14%, comfortably outpacing sales. This has pushed the value of unsold inventory to an all-time high of ₹92,110 crore, a build-up the industry needs to watch carefully. On the affordability front, there is genuinely good news: for the first time in five years, salary growth has outpaced the rise in home prices, pulling our affordability index back below 4x annual income. Homes remain well within reach of the salaried buyer. My caution to the industry, however, is this — we cannot let supply continue to outrun demand indefinitely. Excess inventory, if left unchecked, is good for no one; it slows cash flows for developers and can delay project execution, which ultimately hurts the very home buyers it appears to benefit.”
He added, “The challenge for the industry is that price growth has moderated at precisely the time construction costs have risen sharply, driven by input and commodity price pressures. While some of the pressure on material and labour costs has eased with the improving geopolitical situation, costs remain well above pre-March levels. If they were to revert to those earlier levels, developers would largely be able to absorb the impact. However, the more likely scenario is that costs will settle somewhere in between, in which case some increase in home prices will be warranted to maintain project viability. For home buyers, this may translate into some excellent buying opportunities, particularly in segments like Premium Plus where inventory is highest — but as always, the financial strength and track record of the developer matters more than ever.”
Market Trends and Analysis:
● Supply concentrates in two corridors: Zone 6 (PCMC) and Zone 4 (West / IT corridor) together accounted for over 60% of the city's new supply. West Pune commands the highest prices at ₹8,592 per sq. ft., while PCMC remains the affordability anchor at ₹5,773 per sq. ft.
● Configuration mix shifts decisively: 3-BHK homes now make up 33% of new launches, while 1-BHK launches have fallen to just 10% — a near-complete reversal from six years ago that structurally narrows choices for entry-level buyers.
● Ready stock remains genuinely scarce: Despite record overall inventory, only about 2,065 ready-to-move-in units are currently available city-wide out of 86,954 unsold homes — buyers seeking immediate possession still face a thin market.
Looking Ahead:
Pune's residential market enters the second half of 2026 in one of its healthiest overall balances in years, but its next chapter will be shaped chiefly by developer discipline. In Gera's base-case view, sales should hold broadly in the 92,000–95,000 unit range as the recovery matures, price growth should stay in the 5–6% range, and developers are expected to moderate the pace of new launches in response to the current overhang, allowing the replacement ratio to ease back towards 1.0 over coming cycles. Should launches continue to outpace absorption, however, overhang could push past 12 months city-wide, potentially forcing price corrections in the already-stretched Premium Plus segment. For now, the data does not point to a downturn — rather, to a market whose stability will depend squarely on developers exercising restraint on the timing and scale of new supply.
About the Gera Pune Residential Realty Report:
The Gera Pune Residential Realty Report is a bi-annual initiative by Gera Developments aimed at garnering insights on both the supply and demand sides of the residential realty market in Pune. Now in its 15th year, this longest-running, census-based study uses a feet-on-street methodology of data gathering and covers the Pune Urban Agglomeration area. The data is validated and statistically analysed. What started as a knowledge-gathering initiative in 2011 has become a report that realtors, IPCs, research houses, brokerage houses, and banks & financial institutions look forward to. Besides a broad overview of inventory available, offtake and prices, the report dives deeper to mine insights by price segment, square footage, construction stage and size of unit.
About Gera Developments Private Limited:
Gera Developments Private Limited, a reputed brand for over 50 years, is one of the pioneers of the Real Estate business in Pune. Recognised as the creators of premium residential and commercial projects in Pune, Goa and Bengaluru, the brand has established a global presence through developments in California, USA. Gera prides itself on providing long-term enjoyment to customers, by having a distinct customer-first approach. The philosophy at Gera of “Let's Outdo” rests on the trinity of Innovation, Transparency, and Enhanced Customer Experience. It is at the heart of Gera's effort to infuse innovation and transparency in Real Estate and home building, with an unwavering focus on meeting the shifting lifestyle dynamics of their customers, while upholding the premium living experience. Accordingly, there are many 'firsts' that stand to Gera's credit.
The company introduced a 5-Year Warranty on Real Estate, consisting of Preventive Maintenance & Repairs and provision of insurance on buildings way back in 2004 for the first time in India. RERA mandated the same only in 2017. Gera also introduced India's first and only 7-year warranty in Real Estate. They have designed and launched a pathbreaking concept, the award-winning ChildCentric® Homes, which revolutionised the Real Estate sector for both, the developer and the home buyer. The company has also launched Gera's Home Equity Power — a first-of-its-kind industry initiative providing financial flexibility to customers to withdraw funds from their prior payments to meet financial emergencies.
These products are matched by the services of the GeraWorld® Mobile App, which brings speed, convenience, and transparency to the buyer, enhancing customer experience. Gera Developments has also launched the Club Outdo initiative, a tech-driven loyalty and referral program that provides multiple benefits, offers, and community engagement opportunities to existing and new customers.
The company emphasises delivering value-added experiences to customers, with projects designed around the evolving needs of their customers. Driven by trust, quality, a customer-first mindset, and innovation, the brand has won several national and international awards on both the product and service fronts. Gera continues to be recognised by the Great Place to Work® (GPTW) Institute among India's Best Workplaces.
Gera envisions raising the standards of Real Estate in India. As they redefine new standards of service orientation, product innovation, real estate marketing, and brand building, they are consistently generating fresh value for its stakeholders, while setting new benchmarks for the industry.
