Housing Sales in 15 Tier-II Cities Decline 8% to 43,781 Units in Q1: PropEquity Report
Housing sales in 15 major Tier-II cities declined 8% to 43,781 units in the first quarter of 2025, according to a report by PropEquity. Despite the drop in volume, sales in value terms increased by 6% to ₹40,443 crore. Lucknow saw the highest increase with a 25% rise in units sold.
Housing SalesTierii CitiesPropequityReal EstateInfrastructureReal Estate NewsJun 01, 2025
In the same period of 2024, housing sales in volume stood at 47,378 units, while in value terms, they were at ₹38,102 crore. These 15 Tier-II cities are Ahmedabad, Surat, Vadodara, Gandhi Nagar, Nashik, Nagpur, Goa, Lucknow, Jaipur, Mohali, Visakhapatnam, Kochi, Coimbatore, Bhopal, and Bhubaneswar.
Samir Jasuja, Founder and CEO of PropEquity, said, 'The lesser supply in March quarter resulted in lower sales in Tier-II cities. State capitals performed relatively better.' He added that the demand continues to be strong due to improving physical and social infrastructure.
Lucknow witnessed the maximum 25% increase in the number of units sold in the March quarter at 1,301. This was followed by Coimbatore with a 21% increase, Gandhi Nagar with 18%, and Mohali with 2%. Other 11 cities saw a decline in the number of units sold in Q1 2025, with Visakhapatnam registering the highest decline of 37%.
In value terms, eight cities saw an increase in sales, while seven witnessed a decline. Ahmedabad, the biggest market among these 15 cities, saw a 1% decline in sales to 14,583 units from 14,780 units, but sales value grew 7% to ₹13,565 crore from ₹12,730 crore.
'Tier-II cities are rapidly emerging as prominent housing markets, driven by expanding corporate presence, employment opportunities, and aggressive infrastructure development. These cities are witnessing a transformation fueled by strategic public and private investments. This has led to a surge in demand and property prices across various micro-markets,' said Mohit Malhotra, Founder & CEO of realty firm NeoLiv.
Yashank Wason, Managing Director of Royal Green Realty, noted that the rise of Tier-II cities such as Indore, Sonipat, and Rohtak as real estate investment hubs can largely be attributed to their advancing infrastructure. 'As metropolitan regions face saturation, these cities offer a compelling blend of opportunity and lifestyle, positioning them at the forefront of India's next real estate growth wave,' he added.
Vijay Harsh Jha, founder and CEO of VS Realtors, said the marginal drop in sales volumes is temporary and demand will improve because of strong economic growth and likely reduction in interest rates on home loans.
Frequently Asked Questions
What is the current state of housing sales in Tier-II cities?
Housing sales in 15 major Tier-II cities declined 8% to 43,781 units in the first quarter of 2025, according to a report by PropEquity.
Which city saw the highest increase in housing sales?
Lucknow witnessed the maximum 25% increase in the number of units sold in the March quarter at 1,301.
How did the value of housing sales change in the first quarter of 2025?
Sales in value terms increased by 6% to ₹40,443 crore during the first quarter of 2025.
What factors are driving the demand in Tier-II cities?
The demand in Tier-II cities is being driven by expanding corporate presence, employment opportunities, and aggressive infrastructure development.
What is the outlook for housing sales in the near future?
The outlook is positive due to strong economic growth and the likelihood of a reduction in interest rates on home loans, which is expected to boost demand.
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