Home gross sales in tier-II cities gross sales dip 8%, however worth rises 6% in Q1 2025: PropEquity report
NEW DELHI: Housing gross sales in India’s tier-II cities witnessed a combined efficiency throughout the January-March quarter of 2025, with a decline in quantity however a rise in worth, in line with knowledge from actual property consultancy PropEquity, as reported by PTI.A complete of 43,781 housing models had been offered throughout 15 tier-II cities in Q1 2025, marking an 8 per cent drop from 47,378 models within the corresponding interval final yr. Nonetheless, the general transaction worth rose 6 per cent to Rs 40,443 crore, up from Rs 38,102 crore a yr in the past.The evaluation lined cities together with Ahmedabad, Surat, Vadodara, Gandhinagar, Nashik, Nagpur, Goa, Lucknow, Jaipur, Mohali, Visakhapatnam, Kochi, Coimbatore, Bhopal, and Bhubaneswar.Explaining the contrasting traits, PropEquity Founder and CEO Samir Jasuja stated, “The lesser provide in March quarter resulted in decrease gross sales in tier 2 cities. State capitals carried out comparatively higher.” He added that demand continues to be supported by enhancements in infrastructure.Jasuja additionally pointed to financial coverage as a possible driver for future development. “RBI has made 50 foundation factors lower in repo charge since January 2025 and is anticipated to chop charges additional. As this will get transmitted by banks, dwelling loans will decline going ahead thereby giving a lift to housing demand,” he stated.Among the cities, Lucknow led with a 25 per cent year-on-year improve in models offered at 1,301, adopted by Coimbatore (21 per cent), Gandhinagar (18 per cent), and Mohali (2 per cent). In distinction, 11 cities noticed a fall in gross sales, with Visakhapatnam registering the steepest decline at 37 per cent.Ahmedabad, the biggest among the many surveyed markets, noticed a marginal 1 per cent dip in gross sales quantity to 14,583 models. Nonetheless, the whole worth of transactions within the metropolis rose 7 per cent to Rs 13,565 crore, in comparison with Rs 12,730 crore in the identical quarter final yr.NeoLiv Founder and CEO Mohit Malhotra stated tier-II cities are more and more turning into outstanding housing markets. “Tier-II cities are quickly rising as outstanding housing markets, pushed by increasing company presence, employment alternatives, and aggressive infrastructure growth. These cities are witnessing a metamorphosis fuelled by strategic private and non-private investments. This has led to a surge in demand and property costs throughout numerous micro-markets,” he stated.Royal Inexperienced Realty Managing Director Yashank Wason additionally famous the rising attraction of rising markets. “As metropolitan areas face saturation, these cities provide a compelling mix of alternative and way of life, positioning them on the forefront of India’s subsequent actual property development wave,” he stated, naming Indore, Sonipat, and Rohtak amongst these benefiting from speedy infrastructure growth.VS Realtors Founder Vijay Harsh Jha expressed optimism about the way forward for tier-II housing markets. He stated the present decline in gross sales is non permanent and anticipated sturdy financial development, together with decrease dwelling mortgage charges, will revive demand.
