Tier II Cities See 4% Rise in Housing Sales Value Despite Volume Dip
Housing sales across India’s 15 major Tier II cities rose 4 per cent in value to Rs 37,409 crore in the July-September quarter of 2025, even as volumes declined, according to real estate analytics firm PropEquity.
Sales fell 4 per cent year-on-year to 39,201 units during the quarter, while new housing supply dropped 10 per cent to 28,721 units. The 15 cities include Ahmedabad, Surat, Gandhi Nagar, Vadodara, Jaipur, Nashik, Nagpur, Mohali, Bhubaneshwar, Lucknow, Bhopal, Coimbatore, Goa, Trivandrum, and Kochi. Ahmedabad, the largest market, recorded a 6 per cent decline in sales to 13,021 units, while Surat saw an 8 per cent drop to 4,936 units.
Samir Jasuja, founder and CEO of PropEquity, was quoted by news agency PTI as saying, “Tier 2 cities remain the key engines of India’s growth story. Expanding employment opportunities, improving infrastructure, and stronger connectivity continue to drive sustained demand across residential, commercial, and retail real estate.”
Lalit Parihar, MD of Aaiji Group, noted that the four Gujarat cities—Ahmedabad, Surat, Gandhi Nagar and Vadodara—dominate Tier II launches and sales, accounting for over 60 per cent. “These cities demonstrate strong housing demand driven by robust economic growth, rising white-collar employment, and rapid infrastructure upgrades. With improved connectivity and expanding industrial hubs, they offer a balanced mix of affordability, quality of life, and long-term investment potential,” he said, as per PTI.
Kirthi Chilukuri, founder & MD of Stonecraft Group, said the drop in new launches is more of a strategic pause than a slowdown. “The 4 per cent rise in sales value shows demand remains strong, with buyers willing to pay more for trusted brands and better amenities. This signals a healthier, more mature market where long-term value matters,” Chilukuri added.
Other industry experts, including Yashank Wason of Royal Green Realty and Rajat Khandelwal of Tribeca Developers, also affirmed that Tier II cities continue to see strong housing demand, with homebuyers showing preference for newly launched projects, reported PTI.
