Residential Plot Launches Surge in Tier II Cities: Report
Over 4.7 lakh residential plots were launched across top Tier I and Tier II cities between 2022 and May 2025, with Tier II cities leading the trend, according to PropEquity.
Residential PlotsReal EstateTier Ii CitiesProperty InvestmentPropequityReal Estate NewsJul 15, 2025
The report showed that Tier II cities have taken the lead in this trend, accounting for 52% of the total plot launches (around 2.43 lakh units). Hyderabad, Indore, and Bengaluru emerged as the top three cities in terms of cumulative supply between 2022 and May 2025, while Indore, Chennai, and Hyderabad led in 2024.
The surge comes amid growing investor interest in plots as a flexible and appreciating asset class, and developers opting for plotted developments to ensure faster cash flows and lower upfront investment. The combined estimated value of these launches stands at ₹2.44 lakh crore, the report said.
Hyderabad, Bengaluru, and Chennai were the only Tier I cities to make it to the top 10 in terms of plot supply, collectively accounting for 48% of the launched units. The top 10 cities for plot launches since 2022 are Hyderabad, Indore, Bengaluru, Chennai, Nagpur, Jaipur, Coimbatore, Mysore, Raipur, and Surat, the report showed.
Samir Jasuja, founder and CEO of PropEquity, attributed the spike in interest to changing post-pandemic preferences among buyers and investors. “Residential plots have emerged as a safe haven, offering liquidity, faster price appreciation, and the ability to customise one’s home,” he said. “For developers, plotted developments offer faster sales cycles and lower construction liabilities compared to apartments.”
He added that while demand for apartments, floors, and villas has shown early signs of weakness in the first half of 2025, plots continue to gain traction, especially in cities like Indore, Coimbatore, Mysore, and Raipur, where prices have appreciated significantly.
The report said even as demand has remained strong, the overall supply of residential plots in the top 10 cities dropped 23% year-on-year in 2024, totalling 1,26,556 units, following a 24% Y-o-Y growth in 2023. In 2025 so far (Jan–May), developers have launched 45,591 plots, 36% of 2024's supply and 28% of the previous year’s.
Only three cities, Chennai (27%), Coimbatore (40%), and Surat (2%), recorded a rise in supply in 2024. Other major cities, including Hyderabad and Bengaluru, witnessed a dip. Despite the supply contraction, prices surged. The weighted average launch price rose 27% year-on-year in 2024 to ₹3,679 per sq. ft., translating to ₹33,111 per sq. yard or ₹39,586 per sq. meter, the report said.
Indore led the country in plot launches in 2024 with 26,538 units, followed by Chennai and Hyderabad, indicating a growing appetite for plotted developments outside traditional metros.
Frequently Asked Questions
Which cities are leading in residential plot launches?
Hyderabad, Indore, and Bengaluru are the top three cities in terms of cumulative supply of residential plots between 2022 and May 2025.
What is the estimated value of the residential plot launches?
The combined estimated value of these launches stands at ₹2.44 lakh crore, according to the PropEquity report.
Why are residential plots gaining popularity among investors?
Residential plots are gaining popularity due to their liquidity, faster price appreciation, and the ability to customize one's home, making them a safe haven for investors.
How has the supply of residential plots changed in 2024?
The overall supply of residential plots in the top 10 cities dropped 23% year-on-year in 2024, totalling 1,26,556 units.
Which cities saw an increase in residential plot supply in 2024?
Chennai, Coimbatore, and Surat recorded a rise in supply in 2024, with increases of 27%, 40%, and 2%, respectively.
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