Housing sales in top 15 tier-II cities rise 20% to Rs. 1,52,552 crore (US$ 17.56 billion): PropEquity

Housing sales in 15 top tier-II cities grew by 20% in value terms in 2024, reaching Rs. 1,52,552 crore (US$ 17.56 billion), driven by higher volumes and price appreciation, as real estate data analytics firm PropEquity reported. The number of units sold increased by 4%, from 1,71,903 in 2023 to 1,78,771 in 2024. Among the 15 cities—Ahmedabad, Surat, Vadodara, Gandhinagar, Nashik, Jaipur, Nagpur, Bhubaneswar, Mohali, Visakhapatnam, Lucknow, Coimbatore, Goa, Bhopal, and Trivandrum—Coimbatore saw the largest rise in sales volume, at 36%. At the same time, Visakhapatnam experienced the most significant decline at 21%. Regarding value, Bhubaneswar recorded the highest growth at 47%, while Nashik saw a 2% drop. 

Founder & CEO of PropEquity, Mr. Samir Jasuja, highlighted that the 20% rise in sales value, with only a 4% increase in volume, reflects a sharp increase in property prices. This can be attributed to rising raw material costs and speculative investments, which could impact the real estate market. He also noted that the upcoming Budget announcements are expected to boost demand in tier-II cities further, creating employment opportunities. Ahmedabad led the sales value, reaching Rs. 49,421 crore (US$ 5.69 billion) in 2024, a 17% increase from Rs. 42,063 crore (US$ 4.84 billion) in 2023. Experts like the CEO of Hero Realty, Mr. Madhur Gupta, and Managing Director of Royal Green Realty, Mr. Yashank Wason, pointed to factors such as lower living costs and improved housing supply in tier-II cities driving the demand as homebuyers move away from increasingly congested tier-I cities.  

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.