Housing Sales in Top 15 Tier 2 Cities Up by 4%, Sales Value Surges by 20% in 2024: PropEquity
Housing sales in India’s top 15 tier 2 cities saw a 4% increase to 1.78 lakh units, with the sales value rising by 20% to ₹1.52 lakh crore in 2024, according to real estate data analytics firm PropEquity.
Housing SalesTier 2 CitiesPropequityReal EstateSales ValueReal EstateFeb 12, 2025
This growth is attributed to higher volumes and an increase in prices.
PropEquity released the data on February 12, 2025, for 15 major tier-II cities.
The total housing sales increased from 1.71 lakh units in 2023 to 1.78 lakh units in 2024.
The sales value also saw a significant jump from ₹1.27 lakh crore in 2023 to ₹1.52 lakh crore in 2024.
Among the 15 cities analyzed, Coimbatore recorded the highest increase in housing sales at 36%, while Visakhapatnam saw the maximum decline at 21%.
Bhubaneswar led in sales value growth with a 47% increase, whereas Nashik experienced a 2% decline in sales value.
Ahmedabad topped the list in terms of sales value, selling homes worth ₹49,421 crore in 2024, a 17% rise from ₹42,063 crore in the preceding year.
The 15 cities included in the analysis were Ahmedabad, Surat, Vadodara, Gandhi Nagar, Nashik, Jaipur, Nagpur, Bhubaneswar, Mohali, Visakhapatnam, Lucknow, Coimbatore, Goa, Bhopal, and Trivandrum.
Samir Jasuja, founder and CEO of PropEquity, commented on the Budget 2025 announcements, which are expected to boost housing demand in tier 2 cities.
The proposals include the development of airports, promotion of GCCs (Goods and Services Tax Business Parks), tourism, and relaxation on second homes.
Notably, the tax exemption on income up to ₹12 lakhs and the continued focus on infrastructure development, such as metro rail, highways, and expressways, will enhance growth across all segments of the real estate sector.
However, Jasuja also noted that the 20% increase in sales value, despite a 4% rise in sales volume, points to a rapid increase in home prices.
Factors like the rise in the cost of raw materials and speculative investments could impact the real estate market, he added.
These trends indicate a robust real estate sector in tier 2 cities, driven by various economic and infrastructural developments.
Frequently Asked Questions
What is the percentage increase in housing sales in India’s top 15 tier 2 cities?
Housing sales in India’s top 15 tier 2 cities increased by 4% in 2024.
How much did the sales value of housing increase in 2024 in these cities?
The sales value of housing increased by 20% to ₹1.52 lakh crore in 2024.
Which city recorded the highest increase in housing sales?
Coimbatore recorded the highest increase in housing sales at 36%.
What factors are contributing to the increase in home prices in tier 2 cities?
The increase in home prices is attributed to factors like the rise in the cost of raw materials and speculative investments.
How is the Budget 2025 expected to impact the real estate sector in tier 2 cities?
The Budget 2025 announcements, including the development of airports, promotion of GCCs, tourism, relaxation on second homes, and tax exemption on income up to ₹12 lakhs, are expected to boost housing demand and create employment opportunities in tier 2 cities.
Related News Articles
NAREDCO and FSAI Sign Memorandum of Understanding to Boost Real Estate Sector
NAREDCO and FSAI have signed a Memorandum of Understanding (MoU) to collaborate on various initiatives aimed at enhancing the real estate sector in India. This strategic partnership is set to bring about significant improvements in housing and infrastruct
Right-Sizing: A Key Strategy to Address the UK's Housing Crisis
A new report from Barclays highlights the importance of right-sizing in solving the UK's complex housing crisis, especially when combined with government efforts to increase housing supply.
Pune Land Records Department Launches Online Speed Post System for Property Card Notices
The Pune Land Records Department has introduced an online Speed Post system for property card notices on a pilot basis in City Land Survey Offices No.1 and No.2. This new facility aims to streamline the process of sending property card notices and enhance
Mumbai Real Estate: The Role of Vertical Transportation in High-Rise Development
Mumbai, with its limited land availability, is increasingly turning to high-rise buildings to meet the growing demand for real estate. This shift is made possible by advancements in vertical transportation technology, which is revolutionizing the way we m
MahaRERA to Resolve Pending Recovery Cases Within 3 Months
Pune: All pending Maharashtra Real Estate Regulatory Authority (MahaRERA) recovery warrant cases will be resolved within the next three months, as announced by the authority. This move is aimed at providing swift justice to homebuyers and developers.
ED Launches Raids on AAP MLA Kulwant Singh's Estate in Mohali
A significant crackdown has been initiated by the Enforcement Directorate (ED) on the palatial residence of AAP MLA Kulwant Singh in Mohali. Known for his vast wealth and real estate ventures, Singh's assets are estimated to be worth Rs 1000 crore.