Pune’s real estate market is showing early signs of a revival in demand, but the recovery is unfolding amid a growing supply overhang. Housing sales rose 7% year-on-year during the 12 months ended June 2026, marking the city’s first annual sales recovery in four years. However, the improvement in demand was outpaced by a surge in new project launches, pushing the value of unsold housing inventory to an all-time high of ₹92,110 crore, according to Gera Developments’ Pune Residential Realty Report.
The widening gap between launches and sales suggests developers continue to add supply faster than the market can absorb it.
At the same time, Pune’s property prices continued to climb, albeit at a more measured pace. Annual price appreciation moderated to 4.8% from 7.3% a year earlier, indicating that the market is regaining momentum through slower price increases rather than outright discounts.
The report also points to a structural shift in buyer preferences. Demand has steadily migrated from smaller apartments to larger homes over the past few years. Sales of homes measuring up to 1,000 sq ft have declined sharply, while residences exceeding 1,400 sq ft have registered the strongest growth. The trend underscores the growing dominance of upgraders, existing homeowners seeking larger, better-quality homes, over first-time buyers in Pune’s residential market.
Housing sales in the Pune real estate market increased from 86,666 units in the 12 months ending June 2025 to 92,341 units in the corresponding period ending June 2026. On the other hand, residential launches increased 14% year-on-year to 1,01,085 units from 88,941 units during the same period, the report noted.
The higher pace of launches compared to sales resulted in a replacement ratio of 1.09, indicating that more homes are entering the market than are being sold. Consequently, the inventory overhang increased to 11.3 months from 10.8 months a year earlier, the report 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 bringing buyers back. The 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,” said Rohit Gera, Managing Director, Gera Developments Private Limited.
Pune’s unsold housing inventory hits all-time high of ₹92,110 crore
According to the report, the most notable trend was the sharp rise in the value of unsold inventory, which climbed 28% year-on-year to an all-time high of ₹92,110 crore. The report said that stock available for sale rose to 86,954 units across 2,925 active projects (total stock 346,547). Inventory overhang has moved up to 11.3 months (from 10.8 a year earlier) as supply outpaced demand.
Developers have responded to this recovery with considerable enthusiasm; new launches are up 14%, comfortably outpacing sales, Gera said.
“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,” Gera said.
According to Gera, the challenge for the industry is that price growth has moderated precisely as 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 homebuyers, this may translate into some excellent buying opportunities, particularly in segments where inventory is highest, but as always, the financial strength and track record of the developer matter more than ever,” Gera said.
Pune property prices continue to rise, but at a slower pace
The report said that property prices in Pune continued to appreciate, although at a slower pace than last year. The average residential price increased 4.8% to a record ₹7,082 per sq ft, compared with an annual growth of 7.3% in the previous year.
According to the report, the average home size in Pune reached a record 1,275 sq ft, with demand shifting towards larger residences. Homes measuring between 1,401 and 1,600 sq ft recorded a 33% increase, while demand for compact homes in the 600-800 sq ft category declined 19%.
