New Delhi [India]: Housing sales in India's top 15 tier 2 cities fell by 8 per cent to 43,781 units in Q1 2025 as compared to 47,378 units in the same period last year, said a report by NSE-listed real estate data analytics firm PropEquity.
The sales value during the quarter, however, rose by 6 per cent to Rs 40,443 crore in Q1 2025 as against Rs 38,102 crore in the same period last year, the PropEquity report noted.
According to the report, Lucknow with 25 per cent increase in number of units sold in Q1 2025 at 1,301 units registered the highest growth amongst top 15 tier 2 cities.
This was followed by Coimbatore 21 per cent, Gandhi Nagar 18 per cent, and Mohali 2 per cent. Other 11 cities saw decline in number of units sold in Q1 2025 with Visakhapatnam registering the highest decline (37 per cent) and Ahmedabad and Goa recording the least decline (1 per cent each). Coimbatore with 52 per cent growth saw the highest increase in sales value at Rs 1,120 crore in Q1, 2025. This was followed by Lucknow at 48 per cent, Gandhi Nagar 36 per cent, Mohali and Goa at 17 per cent each, Ahmedabad and Bhubaneshwar at 7 per cent each and Kochi 5 per cent.
Other 7 cities saw a decline in sales value in Q1 2025 with Visakhapatnam recording the highest decline (35 per cent) and Vadodara and Nagpur registering the least decline (1 per cent 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 and 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, homes loans will decline going forward thereby giving a boost to housing demand," Jasuja added.
The six State Capitals in top 15 tier 2 cities, namely Gandhi Nagar, Jaipur, Bhubaneshwar, Lucknow, Goa and Bhopal, saw 5 per cent decline in sales and 17 per cent increase in sales value, accounting for 25 per cent of sales and 30 per cent of sales value in Q1 2025, as per the PropEquity report.
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