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Pune's real estate market has recorded its first yearly recovery in home sales in four years, with housing sales increasing by 7% during the 12 months ending June 2026, according to a recent report.
Pune's residential real estate market has shown signs of recovery, with housing sales increasing by 7% year-on-year during the 12 months ending June 2026. However, the rise in demand has been accompanied by a faster increase in new project launches, pushing the value of unsold housing inventory to a record ₹92,110 crore, according to the latest Pune Residential Realty Report by Gera Developments.
The report shows that while homebuyers have started returning to the market, developers are launching new projects at a faster pace than homes are being sold. As a result, the supply of unsold homes continues to grow.
Pune recorded its first annual increase in housing sales in four years. Residential sales increased from 86,666 units in the 12 months ending June 2025 to 92,341 units in the same period ending June 2026.
During the same period, developers launched 1,01,085 new homes, up 14% from 88,941 units a year earlier. Since new launches grew faster than sales, more homes entered the market than were sold.
The report noted that the replacement ratio reached 1.09, showing that housing supply is increasing faster than demand. As a result, the inventory overhang rose from 10.8 months to 11.3 months.
One of the biggest highlights of the report is the sharp increase in unsold housing stock.
The total value of unsold inventory increased 28% year-on-year to a record ₹92,110 crore. The number of homes available for sale reached 86,954 units across 2,925 active residential projects, with the total housing stock touching 3,46,547 units.
According to the report, developers have responded positively to improving demand by launching more projects. However, this has also led to a significant rise in unsold inventory, which the industry will need to monitor carefully.
Home prices in Pune continued to rise, but the pace of growth slowed compared to last year.
The average residential property price increased 4.8% to ₹7,082 per sq ft, compared to a 7.3% annual increase recorded a year ago.
The slower rise in prices suggests that the market is becoming more balanced. Buyers are returning without major price cuts, while developers continue to maintain pricing discipline.
The report also highlights a major shift in homebuyer preferences.
Demand is moving away from smaller apartments and towards larger homes. Sales of homes measuring up to 1,000 sq ft have declined over the past few years, while homes above 1,400 sq ft have recorded the strongest growth.
The average home size in Pune has now reached a record 1,275 sq ft.
Among different housing categories, homes measuring 1,401–1,600 sq ft recorded a 33% increase in demand. At the same time, demand for compact homes sized 600–800 sq ft declined by 19%.
This trend indicates that existing homeowners looking for larger and better homes are driving the market more than first-time buyers.
According to Rohit Gera, Managing Director of Gera Developments Private Limited, the Pune housing market is finally showing positive signs after three years of slower sales.
He said that the improvement in demand has come even as price growth has moderated. He also noted that, for the first time in five years, salary growth has been higher than the rise in home prices. This has improved housing affordability and made home ownership easier for many buyers.
Despite better demand, developers continue to face higher construction costs due to increased prices of raw materials and labour.
Although some cost pressure has eased in recent months, expenses remain higher than earlier levels. According to Gera, if construction costs remain elevated, developers may have to increase home prices in the future to maintain project viability.
He added that the current market could offer attractive buying opportunities, especially in segments with higher inventory. However, buyers should always consider the financial strength, delivery record, and reputation of the developer before making a purchase.
