In a latest findings which was revealed by PropEquity, housing sales across 15 top tier-II cities rose 20 percent in value last calendar year to more than Rs 1.52 lakh crore on higher volume and price appreciation.
Rise In Housing Sales Across 15 Top Tier-II Cities
This Wednesday, the real estate data analytics firm PropEquity revealed the data for 15 major tier-II cities.
This data indicates the total housing sales rose 4 percent to 1,78,771 units in 2024 as compared to 1,71,903 in the preceding year.
In value terms, the sales increased 20 per cent to Rs 1,52,552 crore in 2024 from Rs 1,27,505 crore in 2023.
These data indicate the data from 15 cities including Ahmedabad, Surat, Vadodara, Gandhi Nagar, Nashik, Jaipur, Nagpur, Bhubaneswar, Mohali, Visakhapatnam, Lucknow, Coimbatore, Goa, Bhopal and Trivandrum.
The housing sales appears to have risen the most in Coimbatore at 36 percent and fell maximum in Visakhapatnam by 21 per cent in 2024, as per these findings.
On the other hand Bhubaneswar is the city which recorded the highest growth in sales value at 47 percent.
At the same time, Nashik from Maharashtra recorded the lowest sales volume at 2 percent.
“Sales value have risen by 20 per cent even as sales volumes have increased by only 4 per cent in 2024 points to a rapid increase in price of homes in these cities owing to factors like rise in cost of raw materials, speculative investments etc. which may impact the real estate market,” said Samir Jasuja, Founder & CEO, PropEquity.
Budget Announcement Boosting Housing Demands
Further adding that the Budget announcements will give a boost to housing demand in tier-II cities and create opportunities for employment.
When it comes to Ahmedabad, it came at the top in sales value among 15 tier II cities.
It could happen as this city sold homes worth Rs 49,421 crore in 2024, again a 17 percent rise from Rs 42,063 crore in the preceding year.
“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,” said Madhur Gupta, CEO of Hero Realty, while commenting on the report.
The housing demand in tier-II has risen, said Yashank Wason, Managing Director, Royal Green Realty.
Adding, “With hyper-congestion and dwindling quality housing supply in Tier-1 cities, the next generation of homebuyers are increasingly looking towards Tier-2 cities.”
