Housing sales across 15 major Tier II cities have increased 4 per cent annually to Rs 37,409 crore in the July-September quarter despite a fall in volumes, a PropEquity report said.
Real estate data analytics firm PropEquity data showed that housing sales volume in India’s top 15 Tier II cities fell 4 per cent year-on-year (YoY) to 39,201 units in the September quarter.
These 15 Tier II cities are Ahmedabad, Surat, Gandhi Nagar, Vadodara, Jaipur, Nashik, Nagpur, Mohali, Bhubaneshwar, Lucknow, Bhopal, Coimbatore, Goa, Trivandrum and Kochi.
Ahmedabad-Surat leads
The new supply declined 10 per cent YoY to 28,721 units in the July-September Period. In Ahmedabad, the biggest property market among these 15 cities, the housing sales fell 6 per cent annually to 13,021 units during the July-September quarter. In Surat, the sales fell 8 per cent to 4,936 units.
Lalit Parihar, Managing Director of Aaiji Group, a Dholera-based real estate firm, said the four cities of Gujarat, namely Ahmedabad, Surat, Gandhi Nagar and Vadodara, continue to dominate in both launches and sales in Tier 2 cities, accounting for over 60 per cent each.
Key drivers
Samir Jasuja, Founder and CEO of PropEquity, said, “Tier 2 cities remain the key engines of India’s growth story. Expanding employment opportunities, improving infrastructure, and stronger connectivity continue to drive sustained demand across residential, commercial, and retail real estate.”
“These cities continue to demonstrate strong housing demand driven by robust economic growth, manufacturing strength, rising white-collar employment of migratory and local population and rapid infrastructure upgrades. With improved connectivity, expanding industrial hubs and a growing aspirational middle class, these…cities offer a balanced mix of affordability, quality of life and long-term investment potential,” he added.
Reason for slowdown
Kirthi Chilukuri, Founder & Managing Director of Stonecraft Group, said the decline in new housing launches in Tier II cities is more a strategic pause than a slowdown.
“The 4 per cent rise in sales value shows that demand remains strong, with buyers willing to pay more for trusted brands and better amenities. This signals a healthier, more mature market where long-term value matters,” said Chilukuri.