Housing Sales in Top 15 Tier 2 Cities fall 8%, Sales Value up 6% in Q1 2025

Housing sales in India’s top 15 tier 2 cities fell by 8 percent to 43,781 units in Indian Housing market Q1 2025 as compared to 47,378 units in the same period last year with sales value, however, rising by 6 percent to Rs. 40,443 crore in Q1 2025 as against Rs. 38,102 crore in the same period last year, said a report by NSE-listed real estate data analytics firm PropEquity.

➤ Ahmedabad remains on top amongst 15 tier 2 markets with 14,583 units sold and Rs. 13,565 crore sales value.

➤ Western Indian accounted for 79 percent of the total units sold and 74 percent of the total sales value.

➤ Six State Capitals accounted for 25 percent of the sales and 30 percent of sales value. 

According to the report, Lucknow with 25 percent increase in number of units sold in Q1 2025 at 1301 units registered the highest growth amongst top 15 tier 2 cities. This was followed by Coimbatore 21 percent, Gandhi Nagar 18 percent and Mohali 2 percent.

Other 11 cities saw decline in number of units sold in Q1 2025 with Visakhapatnam registering the highest decline (37 percent) and Ahmedabad and Goa recording the least decline (1 percent each).

Coimbatore with 52 percent growth saw the highest increase in sales value at Rs. 1120 crore in Q1, 2025. This was followed by Lucknow at 48 percent, Gandhi Nagar 36 percent, Mohali and Goa at 17 percent each, Ahmedabad and Bhubaneshwar at 7 percent each and Kochi 5 percent.

Other 7 cities saw a decline in sales value in Q1 2025 with Visakhapatnam recording the highest decline (35 percent) and Vadodara and Nagpur registering the least decline (1 percent each).

Samir Jasuja, Founder and CEO, PropEquity said, “The decline in sales in tier 2 cities in January-March period is in line with trends witnessed in tier 1 cities. However, lesser supply in this quarter resulted in lower sales in tier 2 cities. State Capitals performed relatively better.”

“Demand in tier 2 cities, however, remains robust as people have shown greater preference for organised living. Urban rejuvenation efforts, improved connectivity & social infrastructure, and more importantly greater employment opportunities mainly in IT and new manufacturing hubs in tier 2 cities have further accelerated demand not only from within but also from people who have migrated to metro cities and are preferring to purchase property in their hometowns. RBI has made 50bps cut in repo rate since January 2025 and is expected to cut rates further. As this gets transmitted by banks, home loans will decline going forward thereby giving a boost to housing demand.”

The six State Capitals in top 15 tier 2 cities, namely Gandhi Nagar, Jaipur, Bhubaneshwar, Lucknow, Goa and Bhopal, saw 5 percent decline in sales and 17 percent increase in sales value, accounting for 25 percent of sales and 30 percent of sales value in Q1 2025.

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Region-wise trend:

Western India, comprising Ahmedabad, Surat, Vadodara, Gandhi Nagar, Nashik, Nagpur and Goa, saw 6 percent decline in number of units sold in Q1, 2025.

However, sales value rose by 6 percentin Q1, 2025.

Northern India, comprising Lucknow, Jaipur and Mohali saw 14 percent decline in number of units sold in Q1, 2025.

However, sales value rose by 14 percent in Q1, 2025.

Southern India, comprising Visakhapatnam, Kochi and Coimbatore, saw 12 percent decline in number of units sold and 1 percent decline in sales value in Q1, 2025.

Central and Eastern India, comprising Bhopal and Bhubaneshwar, saw 18 percent decline in number of units sold in Q1, 2025. However, sales value remained flat.