Tier 2 Cities Lead Residential Plot Boom in India

India's residential plotted development space has seen a massive transformation with more than 4.7 lakh residential plots launched in the top 10 cities between 2022 and May 2025.According to this new report, interestingly tier II cities led the trend, providing 52 percent (2.43 lakh units) of the plotted supply, reflecting a complete turnaround in development and investment strategy post-pandemic.

Indore, Hyderabad, and Bengaluru are the top three cities in aggregate plot supply during this time. Indore dominated the nation in 2024 itself with 26,538 units, followed by Chennai and Hyderabad. Overall supply in 2024 declined with 23 percent year-on-year to 1.26 lakh units from a 24 percent increase in 2023. 

 Up to May 2025, developers have released 45,591 plots, representing 36 percent of 2024's total.

Key Highlights-

• Tier II cities contributed 52 percent of India's 4.7 lakh plot launches since 2022, with Indore leading nationally in 2024
• Plot prices surged 27 percent year-on-year in 2024 despite a 23 percent drop in overall supply
• Investors increasingly prefer plotted developments for faster appreciation, liquidity, and customization post-pandemic

In spite of this supply pull-back, the mean launch rate of plots jumped 27 percent year-on-year in 2024 to Rs 3,679 per sq. ft. The move follows a shift in investor sentiment and demand for liquid, appreciating assets.

Samir Jasuja, Founder and CEO of PropEquity said, "Residential plots have become a haven of safety, providing liquidity, quicker appreciation in prices, and the freedom to design one's own home. Developers, on their part, enjoy quicker sales and lower liabilities than for apartments.”

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Only three Tier I cities such as Hyderabad, Bengaluru, and Chennai has featured in the top 10, contributing 48 percent of supply. Other cities such as Coimbatore, Mysore, and Raipur has experienced good price appreciation, which shows increasing investor confidence.

"The demand for plotted developments is increasing steadily, particularly in smaller cities, even as interest in apartments and villas begins to decline," Jasuja added.

This trend reflects a larger post-pandemic realignment of priorities in the real estate industry, with customization, control over assets, and quicker ROI motivating purchasing behavior.