Housing Sales Surge in India's Top 15 Tier-II Cities by 20% in Value
Coimbatore leads the growth with a 36% increase in sales volume, while Visakhapatnam's real estate market experiences a 21% downturn.
Housing SalesTierii CitiesReal Estate MarketCoimbatoreVisakhapatnamReal Estate NewsFeb 17, 2025
According to recent data, housing sales in the top 15 tier-II cities have grown by 20% in value.
This surge in sales volume is a promising indicator of the robust health of the real estate sector in these cities, which are rapidly emerging as preferred locations for both residential and commercial investments.
Coimbatore, a city known for its industrial and manufacturing capabilities, has recorded the highest sales volume growth at 36%.
The city's well-developed infrastructure, connectivity, and a growing population have contributed significantly to this impressive growth.
Developers in Coimbatore have been focusing on mid-to-high-end residential projects, catering to the increasing demand for quality living spaces.
On the other hand, Visakhapatnam, a coastal city in Andhra Pradesh, faced a severe downturn in its real estate market, with a 21% decline in sales volume.
The city's market has been affected by a combination of economic slowdown, regulatory changes, and a lack of new infrastructure projects.
Despite these challenges, experts believe that Visakhapatnam has the potential to bounce back with the right investments and policy support.
Other notable cities that have seen a significant increase in housing sales include Indore, Bhopal, and Ahmedabad.
Indore, known for its robust educational and healthcare sectors, has experienced a 25% growth in sales volume.
Bhopal, the capital of Madhya Pradesh, has seen a 20% increase, driven by its growing IT and manufacturing industries.
Ahmedabad, a major industrial hub, has recorded a 15% growth, supported by its strong infrastructure and business environment.
The growth in housing sales in these tier-II cities can be attributed to several factors.
Firstly, the government's push for affordable housing under the Pradhan Mantri Awas Yojana (PMAY) has been a significant driver.
This scheme has helped in increasing the demand for affordable homes in tier-II cities, where the cost of living is relatively lower compared to tier-I cities.
Secondly, the migration of people from urban to semi-urban areas due to the pandemic has also contributed to the rise in housing sales.
The trend of remote working has made it possible for people to live in more affordable and spacious homes while continuing to work for companies located in metropolitan areas.
Additionally, the improvement in infrastructure and connectivity in these cities has made them more attractive for both buyers and investors.
The development of new roads, airports, and public transport systems has reduced travel time and enhanced the overall quality of life.
This has, in turn, attracted more people and businesses to these cities, leading to an increase in housing demand.
However, the real estate market in these tier-II cities is not without its challenges.
One of the primary concerns is the issue of unsold inventory.
Many developers have been left with a significant number of unsold units, which can put a strain on their financial resources.
To address this, the government and the real estate industry need to work together to implement measures that can boost demand and clear the existing inventory.
Another challenge is the need for better regulatory frameworks to ensure transparency and accountability in the real estate sector.
While the Real Estate Regulation and Development Act (RERA) has been a step in the right direction, there is a need for continuous monitoring and enforcement to maintain the high standards of the industry.
In conclusion, the 20% growth in housing sales in India's top 15 tier-II cities is a positive sign for the real estate sector.
While some cities like Coimbatore are leading the way, others like Visakhapatnam need to overcome their challenges to join the growth bandwagon.
The government's initiatives, combined with the improving infrastructure and changing lifestyle preferences, are expected to drive further growth in the coming years.
As these cities continue to evolve, they will play a crucial role in shaping the future of India's real estate market.
Frequently Asked Questions
Which tier-II city recorded the highest growth in housing sales volume?
Coimbatore recorded the highest growth in housing sales volume at 36%.
What factors contributed to the growth in housing sales in tier-II cities?
The growth in housing sales in tier-II cities can be attributed to the government's push for affordable housing under the Pradhan Mantri Awas Yojana (PMAY), the trend of remote working, and improvements in infrastructure and connectivity.
Which city faced a severe downturn in its real estate market?
Visakhapatnam faced a severe downturn in its real estate market, with a 21% decline in sales volume.
What are the main challenges faced by the real estate market in tier-II cities?
The main challenges include the issue of unsold inventory and the need for better regulatory frameworks to ensure transparency and accountability in the real estate sector.
What government initiative has been a significant driver for the growth in affordable housing?
The Pradhan Mantri Awas Yojana (PMAY) has been a significant driver for the growth in affordable housing in tier-II cities.
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