Housing sales in 15 major tier-II cities surged 20% in value to more than Rs 1.53 trillion in 2024, driven by increased sales volume and rising home prices, according to real estate data analytics firm PropEquity, as published by Business Standard.
Total housing sales in these cities climbed 4% to 1,78,771 units in 2024, up from 1,71,903 units in the previous year. In terms of value, sales increased from Rs 1,27,505 crore in 2023 to Rs 1,52,552 crore in 2024.
The 15 cities analyzed in the report are Ahmedabad, Surat, Vadodara, Gandhinagar, Nashik, Jaipur, Nagpur, Bhubaneswar, Mohali, Visakhapatnam, Lucknow, Coimbatore, Goa, Bhopal, and Thiruvananthapuram.
Coimbatore recorded the highest percentage growth in sales volume at 36%, while Visakhapatnam saw the sharpest decline at 21%. Bhubaneswar led in sales value growth, registering a 47% increase, whereas Nashik was the only city to see a decline in sales value, down by 2%.
Ahmedabad topped the list in terms of sales value, with homes worth Rs 49,421 crore sold in 2024, reflecting a 17% increase from Rs 42,063 crore the previous year.
Samir Jasuja, founder and CEO of PropEquity, attributed the surge in sales value to rising home prices, fueled by increasing raw material costs and speculative investments. He cautioned that these factors could impact market stability.
Jasuja also noted that recent Budget announcements could bolster housing demand in tier-II cities while creating employment opportunities.
Industry experts highlighted shifting homebuyer preferences as a driving force behind the trend. Madhur Gupta, CEO of Hero Realty, said employment opportunities, lower living costs, and affordable housing continue to attract buyers to tier-II cities.
Yashank Wason, managing director of Royal Green Realty, emphasized that housing demand in tier-II cities has increased. He pointed to growing congestion and dwindling housing supply in tier-I cities as key reasons why more homebuyers are looking toward tier-II markets.