MUMBAI: Unsold inventory of ready and under-construction houses in in Pune property market is valued around Rs 105,000 crore as on September end, said ratings agency ICRA Pune real estate market has been passing through a difficult phase since quite some time now. Real estate rates appreciation, which had been healthy till 2012-13, has largely turned stagnant thereafter. Out of total units under construction, around 77% are priced under Rs 75 lakh.According to ICRA, significant regulatory developments, changing financing environment and weak demand has been affecting the real estate prices. Dwindling demand from investors due to limited returns over the past few years and uncertainties in the economic environment has impacted the market. As the city’s economy is also critically dependent on IT/ITeS and automobile, favourable demographic profile of young workforce and matching supply with reasonable pricing had ensured conducive environment for the Pune residential real estate.“Significant pressure on key user industries and waning investor demand have impacted the residential real estate market in Pune and sales velocity is likely to remain slow in the near term. The market is undergoing structural change and unorganized local developers are struggling to adjust with the changing operating environment,” said Anand Kulkarni, Assistant Vice President and Associate Head – Corporate Ratings, ICRA.The ratings agency has analysed 2,800 ongoing projects in Pune metropolitan region having total of 2.8 lakh units and over 178 million sq ft carpet area.Comparatively, the commercial real estate in Pune has a stable outlook. The demand in the city for commercial office space has historically outpaced the supply. Resultantly, the vacancy levels have come down gradually.The demand for commercial realty is expected to continue in the near to medium term considering cost arbitrage offered by the city as well as adequate availability of skilled manpower and social infrastructure. As additional supply is also expected to enter the market, the vacancy levels are expected to be stable at around 4-6% over the next few years.