Housing Sales in Top 15 Tier 2 Cities Decline 8%, Sales Value Rises 6% in Q1 2025: Report
A report by PropEquity reveals a decline in housing unit sales in India's top 15 Tier 2 cities, while sales value has increased. Lucknow and Coimbatore show significant growth, while Visakhapatnam and Jaipur experience the highest declines.
Housing SalesTier 2 CitiesReal EstatePropequitySales ValueReal EstateJun 01, 2025
According to the report, Lucknow registered the highest growth amongst the top 15 Tier 2 cities, with a 25% increase in the number of units sold in Q1 2025, at 1,301 units. During the same period last year, 1,040 units were sold in Lucknow. This was followed by Coimbatore, with a 21% increase, Gandhi Nagar with an 18% increase, and Mohali with a 2% increase.
The other 11 cities saw a decline in the number of units sold in Q1 2025. Visakhapatnam registered the highest decline at 37%, followed by Jaipur with a 32% drop, Bhopal with a 31% decline, and Nagpur with a 21% decrease. Ahmedabad and Goa recorded the least decline at 1% each.
Coimbatore witnessed the highest increase in sales value, with a 52% growth to ₹1,120 crore in Q1 2025. This was followed by Lucknow at 48%, Gandhi Nagar at 36%, Mohali and Goa at 17% each, Ahmedabad and Bhubaneswar at 7% each, and Kochi at 5%. The other 7 cities saw a decline in sales value in Q1 2025, with Visakhapatnam recording the highest decline at 35%, and Vadodara and Nagpur registering the least decline at 1% each.
The decline in sales in Tier 2 cities in the January-March period is in line with trends witnessed in Tier 1 cities. However, a lesser supply in this quarter resulted in lower sales in Tier 2 cities. State capitals performed relatively better, said Samir Jasuja, founder and CEO, PropEquity.
Jasuja added that demand in Tier 2 cities remains robust as people have shown a greater preference for organized living. Greater employment opportunities, mainly in IT and new manufacturing hubs in Tier 2 cities, have further accelerated demand not only from within but also from people who have migrated to metro cities and are preferring to purchase property in their hometowns.
RBI has made a 50bps cut in repo rate since January 2025 and is expected to cut rates further. As this gets transmitted by banks, home loans will decline going forward, thereby giving a boost to housing demand, Jasuja concluded.
Frequently Asked Questions
What is the overall trend in housing sales in Tier 2 cities in Q1 2025?
Housing sales in India’s top 15 Tier 2 cities fell by 8% to 43,781 units in Q1 2025, compared to 47,378 units in the same period last year.
Which city saw the highest increase in the number of units sold?
Lucknow registered the highest growth with a 25% increase in the number of units sold in Q1 2025, at 1,301 units.
How did the sales value change in Q1 2025?
Sales value rose by 6% to ₹40,443 crore in Q1 2025, compared to ₹38,102 crore in the same period last year.
Which city recorded the highest decline in sales value?
Visakhapatnam recorded the highest decline in sales value at 35%.
What factors are contributing to the robust demand in Tier 2 cities?
Greater employment opportunities, mainly in IT and new manufacturing hubs, and a preference for organized living are contributing to the robust demand in Tier 2 cities.
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