Pune Housing Sales Drop 17% YoY in Q3 2024; New Supply Plummets by 49%
Pune Housing Sales Drop 17% YoY in Q3 2024; New Supply Plummets by 49%
High prices, monsoon and seasonal factors drive decline in Pune’s housing market, with a significant drop in new launches and shifting buyer preferences.
Pune’s housing market witnessed a notable downturn in Q3 2024, with sales declining by 17% year-on-year and new supply shrinking dramatically by 49%. Despite maintaining its position as the second-highest sales market among India’s top seven cities, the city’s performance highlights the impact of high prices, seasonality and evolving buyer preferences.
According to a report by ANAROCK, a leading property consultancy, housing sales in Pune fell to approximately 19,050 units in Q3 2024, down from 23,000 units in the same period last year. On a quarterly basis, sales also saw a 10% decline. Pune, along with the Mumbai Metropolitan Region (MMR), which sold around 36,190 units, accounted for 52% of the total housing sales across the top seven cities in India, including Delhi-NCR, Bengaluru, Hyderabad, Chennai and Kolkata.
New housing supply in Pune took a significant hit, with only 12,450 units launched in Q3 2024, a sharp drop from the 24,300 units launched in Q3 2023. This marks one of the steepest declines among major cities, reflecting a 34% decrease compared to the previous quarter. The majority of Pune’s new launches (74%) were concentrated in the mid and upper-mid segments, priced between ₹40 lakh to ₹1.5 crore, underscoring a strong focus on mid-income homebuyers.
Affordable housing, traditionally a strong segment in Pune, saw its share diminish, aligning with a broader national trend where the affordable housing segment’s contribution across top cities has fallen to just 13%. Despite the reduction in new launches, Pune’s inventory of unsold homes remained relatively healthy, with sales continuing to outpace the incoming supply. Overall, the top seven cities saw their 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 registered a modest increase in Q3 2024 compared to the same period last year, contributing to a national trend where average prices rose by 23% across the top seven cities. Pune’s price growth was steady but less pronounced than in cities like Hyderabad (32%) and Bengaluru and NCR (29%), indicating sustained demand in key residential areas of the city.
Commenting on the market trends, the Chairman of ANAROCK Group noted, “Pune’s housing market, similar to other major cities, is recalibrating after a robust two-year period. The dip in sales during Q3 2024 reflects typical seasonal factors, including the monsoon and the ‘shraddha’ period when many homebuyers delay purchases. However, continued interest in mid and upper-mid segment housing points to strong demand fundamentals.”
Looking ahead, the report suggests that the market could see a boost during the festive quarter (October-December), with developers preparing to launch several new projects. The Mumbai Metropolitan Region, for instance, saw approximately 29,615 units launched in Q3 2024, marking an 18% year-on-year decrease and a 33% quarterly drop, with over 53% of the new supply catering to the ₹40 lakh to ₹2.5 crore segment. The upcoming festive season is expected to revive buyer sentiment and drive a recovery in the market.
