Pune revived from the COVID hiatus with a 19-month reduction in gestation despite a 2X increment in new supply

The residential real estate market of Pune city is driven by affordable homes in the IT dominant residential pockets. Recovery from the impacts of Covid-19 is well underway as the sales in FY21-22 exceed the pre-Covid level (FY19-20) by 25%, and at the same time, unsold inventory has declined by 21%. The real estate sector has benefited from government and developer incentives leading to higher transactions. Prices have shown a steady growth; a 3% appreciation has been recorded on Y-O-Y in Pune city.

FY 21-22 Highlights

In FY21-22, 53.10 thousand units were sold in Pune city and 50.85 thousand units were launched. Sale and new supply have grown by 49% and 107% Y-O-Y. The saleable price has appreciated by 3% over the last year. The financial year ends with an unsold stock of 123.67 thousand units and which will take 28 months to be absorbed into the market. Reduction in unsold stock has helped reduce months inventory by 19 months

1,000 units
1,000 unit
1,000 units

Month Inventory
FY 20-2135.69139.5224.525,31647
FY 21-2253.10123.6750.855,45528
Y-O-Y49%-11%107%3%-19 months

The highest sales in FY21-22 have been recorded in Aundh along with Pimpri Chinchwad and Hadapsar, together they account for 69% of the total sales. Hinjewadi and Wakad in Aundh, Moshi and Ravet in Pimpri Chinchwad, and Wagholi and Kharadi in Yerawada are the most sought-after locations in Pune due to the presence of several IT Parks and efficient connectivity.

Aundh, Hadapsar, and Pimpri Chinchwad together contribute 73% to the total new launches in FY21-22. Availability of land and affordable prices drive demand in these suburbs. Aundh alone accounts for 48% of the total launched units, mostly catering to the affordable segment.

2BHK captures the highest demand in Pune, it accounts for 55% of the total sales in the market. While, 1BHK and 3BHK contribute 24% and 16% respectively to the total quarterly sales. Pune developers are shifting to compact products due to demand from IT professionals and college students. Co-living is becoming popular among the young workforce and college students.

The market is driven by demand for affordable and LIG segments (units priced under Rs 60 lakh). The sales in the affordability quotient have been boosted by lower home loan rates and developer incentives. The supply of such units has mushroomed in IT dominant residential pockets in North-East Pune. INR 20- 80 Lac ticket size concludes to 83% of the total sales in the market. Maximum sales have been captured in the INR 4,000-6,000 PSF saleable price bracket.

Micro-market classification

AundhHinjewadi, Wakad, Aundh, Balewadi, Baner, Bavdhan, Thergaon, Punawale, Pashan, Rahatani
Kondhwa, Mundhwa, Manjari, Hadapsar, Undri, Phursungi, Keshav Nagar, Handewadi Road, Mohammadwadi, NIBM, Magarpatta, Loni Kalbhor, Wadgaon and Uruli Kanchan

Bhosari, Alandi Road, Pimpri and Chinchwad

Kharadi, Wagholi, Viman Nagar and Kalyani Nagar

Talegaon, Chakan, Kiwale and Mamurdi
Tilak Road Sinhagad Road and Vadgaon Budruk
WarjeDhayari, Warje, Shivane and Khadakwasla
City central

Bhawani Peth, Dhanori, Ambegaon Budruk, Kothrud, Bibvewadi Annexe, Katraj, Karve Nagar, Vishrantwadi, Erandwane, Shivaji Nagar

Note: Saleable price and ticket size mentioned above are excluding any additional charges