Tier 2 Cities Shine: Housing Sales Surge 11% in FY2024
Housing sales in top 30 Tier 2 cities increase by 11% in FY2024, driven by high consumer demand and robust economic growth.
Real EstateHousing SalesTier 2 CitiesPropequityIndian Real Estate MarketReal EstateJul 05, 2024
The top 10 Tier 2 cities, including Ahmedabad, Vadodara, Surat, Nashik, Gandhi Nagar, Jaipur, Nagpur, Bhubaneshwar, Visakhapatnam, and Mohali, contributed 80% to the total sales, with West zone accounting for almost 70% of the total sales. Major cities in Gujarat, such as Ahmedabad, Vadodara, and Surat, witnessed a significant increase in demand.
Samir Jasuja, founder and managing director at PropEquity, attributed the growth to lower property prices and growth potential in Tier 2 cities, making it an attractive option for the growing middle class. He also highlighted the role of government infrastructure initiatives and the setting up of small and medium enterprises (SME) businesses and industries in driving demand.
The data showed that West Zone, comprising cities such as Ahmedabad, Vadodara, Surat, Nashik, Gandhi Nagar, Nagpur, and Goa, reported sales of 1.44 lakh residential units in 2023-24, up 11% from the previous year. North Zone, which includes cities like Jaipur, Mohali, Lucknow, Bhopal, Chandigarh, Dehradun, Bhiwadi, Ludhiana, Agra, Sonepat, Panipat, and Amritsar, reported sales of 26,308 residential units, up 8% from the previous year.
South Zone, comprising cities like Visakhapatnam, Trivandrum, Coimbatore, Kochi, Vijayawada, Mangalore, Guntur, and Mysore, reported sales of 21,947 residential units, up 8.4% from the previous year. East and Central Zone, which includes cities like Bhubaneswar, Bhopal, Indore, and Raipur, reported sales of 15,372 residential units, up 18% from the previous year.
PropEquity is a leading data analytics firm that provides insights and research on the Indian real estate market.
Information The Indian real estate market has been witnessing a shift in demand towards Tier 2 cities, driven by factors such as affordability, infrastructure development, and economic growth.
Frequently Asked Questions
What is the growth rate of housing sales in Tier 2 cities in FY2024?
Housing sales in Tier 2 cities grew by 11% in FY2024.
Which zones contributed the most to the total sales in Tier 2 cities?
West zone accounted for almost 70% of the total sales in Tier 2 cities.
What is driving the demand for housing in Tier 2 cities?
High consumer demand, robust economic growth, infrastructure development, and a growing desire for home ownership are driving the demand for housing in Tier 2 cities.
Which cities are contributing the most to the growth in housing sales in Tier 2 cities?
Cities like Ahmedabad, Vadodara, Surat, Nashik, Gandhi Nagar, Jaipur, Nagpur, Bhubaneshwar, Visakhapatnam, and Mohali are contributing the most to the growth in housing sales in Tier 2 cities.
What is the role of government initiatives in driving demand in Tier 2 cities?
Government infrastructure initiatives are playing a key role in driving demand in Tier 2 cities, making them an attractive option for the growing middle class.
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