Housing sales in top 15 tier-II cities rise 20% to ₹1.53 lakh crore on volume growth: PropEquity

Housing sales across 15 top tier-II cities rose 20% in value terms last calendar year to more than ₹1.52 lakh crore on higher volume and price appreciation, according to PropEquity.

Real estate data analytics firm PropEquity on Wednesday released the data for 15 major tier-II cities where total housing sales rose 4% to 1,78,771 units in 2024 from 1,71,903 in the preceding year.

In value terms, the sales increased 20% to ₹1,52,552 crore in 2024 from ₹1,27,505 crore in 2023.

These 15 cities are: Ahmedabad, Surat, Vadodara, Gandhi Nagar, Nashik, Jaipur, Nagpur, Bhubaneswar, Mohali, Visakhapatnam, Lucknow, Coimbatore, Goa, Bhopal and Trivandrum.

As per the data, housing sales rose the most in Coimbatore at 36% and fell maximum in Visakhapatnam by 21% in 2024.

Bhubaneswar recorded the highest growth in sales value at 47% while Nashik recorded a 2% decline in sales value.

Samir Jasuja, Founder & CEO, PropEquity, said, "Sales value have risen by 20% even as sales volumes have increased by only 4% in 2024 points to a rapid increase in the price of homes in these cities owing to factors like rise in the cost of raw materials, speculative investments, etc. which may impact the real estate market."

Jasuja said the Budget announcements will give a boost to housing demand in tier-II cities and create opportunities for employment.

Ahmedabad was at the top in sales value among 15 tier II cities. The city sold homes worth ₹49,421 crore in 2024, a 17% rise from ₹42,063 crore in the preceding year.

Commenting on the report, Madhur Gupta, CEO of Hero Realty, said "The influx of employment opportunities, lower cost of living, and affordable housing are key factors driving real estate demand and supply in Tier 2 cities."

Yashank Wason, Managing Director, Royal Green Realty said the housing demand in tier-II has risen.

"With hyper-congestion and dwindling quality housing supply in Tier-1 cities, the next generation of homebuyers are increasingly looking towards Tier-2 cities," he added.