Gera Pune Residential Realty Report Captures Market Recalibration Amid Rising Sticker Shock

Pune, July 9, 2025: Gera Developments Private Limited (GDPL), pioneers in premium residential and commercial real estate in Pune, Goa, Bengaluru and California, released the July 2025 edition of their bi-annual ‘The Gera Pune Residential Realty Report’ on Tuesday.

As Pune’s only census-based real estate study running for 14 years and covering over 2,300 projects and 3-plus lakh under-construction homes, the report presents an authoritative, data-driven view of market dynamics for the 12 months ended June.

This year’s report marks a notable transition in Pune’s residential real estate landscape. After seven years of consistent growth in prices, sales and supply, the market is experiencing a consolidation phase driven by ‘sticker shock’, the cumulative effect of rising prices and increasing home sizes.

While prices rose at a moderate 7.31 per cent YoY, this still added significantly to total ticket sizes. Over the past five years, prices have climbed by 40 per cent and average home sizes by 25 per cent, resulting in an overall 76 per cent increase in the average sticker price. Consequently, buyers in the budget and upper-mid segments are facing affordability challenges while affluent buyers are gravitating towards larger, more comfortable homes.

“We are witnessing the market respond to a steep escalation in total ticket size, what we’re calling sticker shock. Even though interest rates have come down over the last six months, affordability remains a concern as the total outgo for buyers has increased by 76 per cent over five years. The steep increase in sticker price has led to sticker shock and has caused people to slow down their purchase decision, resulting in the demand softening,” said Rohit Gera, MD, Gera Developments Private Limited.

“Developers are responding cautiously by slowing new launches and recalibrating configurations. I expect smaller home sizes to return to the market, making homes more affordable not through pricing corrections but by offering compact yet efficient layouts. For buyers, this is a critical time—choosing projects by developers with strong financial stability is more important than ever.”

Market Trends and Analysis:

• Replacement Ratio: The replacement ratio of 1.08 indicates a mildly oversupplied market. In a cyclical market like real estate, mild oversupply eventually corrects itself, restoring the market equilibrium.
• New project prices: Prices of new projects launched are down by 4.73 per cent over the last year while the overall market is still on an uptrend.
• East Pune prices rise: East Pune recorded the highest price appreciation across the city, marking a 9.6 per cent growth, followed by West Pune, which saw a 6.8 per cent appreciation.
• Project Landscape: Pune now has 2,605 residential projects under development, up 6.7 per cent over June 2024. However, the market is consolidating, small projects ( less than 100 units) fell 39 per cent since 2018 while large projects (greater than 500 units) surged by 70 per cent.
• Metro Influence: Areas such as Hinjewadi, connected by the new Metro corridors, have seen stable pricing and increased traction from affordability-focused buyers.