Housing Sales on a Slide in Tier -2 Cities

Notwithstanding a marginal increase in the sales value of residential units, home sales are in a declining mode.

According to a recent PropEquity report, housing sales in India’s top 15 tier 2 cities, except North India, fell 4 percent in Q3 2025, amidst a 10 percent dip in new launches across all the regions. Overall sales fell to 39201 units even as the sales value rose by 4% to Rs 37,409 crore indicating a gradual shift towards premium homes.

The new supply declined 10% YoY to 28,721 units in the third quarter ending September 2025.

Eight out of the fifteen cities saw YoY decline in sales with Bhubaneshwar witnessing the maximum decline at 26%. Trivandrum saw the maximum rise in sales at19% in Q3 2025.Bhubaneshwar saw the maximum decline in new launches at 88% during the third quarter. Eight out of fifteen cities saw a decline in new launches. In volume terms, Ahmedabad remained the top market in terms of both sales and launches in Q3 2025.

“There has been a steady decline in new housing launches, especially in the high-volume affordable and mid-income segments. With rising input costs and evolving consumer aspirations pushing up home prices and home sizes, sales momentum in these markets has begun to moderate. That 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”, says Samir Jasuja, Founder & CEO, PropEquity.

On QoQ basis, The report mentions that housing sales fell by 3% on QoQ basis while sales value declined by 1% amidst 26% fall in launches in Q3 2025.

Total Absorption (Units)
Location	Q3-2024	Q2-2025	Q3-2025	Q-o-Q Change	Y-o-Y Change
Ahmedabad	13782	13461	13021	-3%	-6%
Surat	5347	5046	4936	-2%	-8%
Gandhi Nagar	3294	3815	3496	-8%	6%
Vadodara	4200	3568	3349	-6%	-20%
Jaipur	2272	2369	2627	11%	16%
Nashik	2663	2787	2500	-10%	-6%
Nagpur	1754	1564	1690	8%	-4%
Mohali	1243	1359	1471	8%	18%
Bhubaneshwar	1508	1418	1119	-21%	-26%
Lucknow	864	1038	991	-5%	15%
Bhopal	907	976	959	-2%	6%
Coimbatore	1024	988	910	-8%	-11%
Goa	876	828	881	6%	1%
Trivandrum	560	553	664	20%	19%
Kochi	736	561	587	5%	-20%
Top 15 tier 2 cities	41030	40331	39201	-3%	-4%

Western India comprising Ahmedabad, Surat, Gandhi Nagar, Vadodara, Nashik, Nagpur and Goa saw 6% YoY and 4% QoQ decline in sales in Q3 2025. The western region accounted for 76% of the total sales.

Northern India comprising Lucknow, Mohali and Jaipur saw 16% YoY and 7% QoQ rise in sales in Q3 2025.

Southern India comprising Coimbatore, Trivandrum and Kochi saw 7% YoY decline and 3% QoQ rise in sales in Q3 2025.

Central and Eastern India comprising Bhopal and Bhubaneshwar saw 14% YoY and 13% QoQ decline in sales in Q3 2025.

New Launches (Units)
Location	Q3-2024	Q2-2025	Q3-2025	Q-o-Q Change	Y-o-Y Change
Ahmedabad	11384	11398	11471	1%	1%
Vadodara	2803	1814	2635	45%	-6%
Surat	3785	5437	2507	-54%	-34%
Jaipur	1393	3019	2311	-23%	66%
Gandhi Nagar	2522	4163	2171	-48%	-14%
Nashik	1100	1609	1709	6%	55%
Bhopal	515	1114	1148	3%	123%
Nagpur	1670	1855	1087	-41%	-35%
Trivandrum	120	736	780	6%	550%
Goa	592	887	728	-18%	23%
Kochi	544	556	626	13%	15%
Mohali	1799	3488	604	-83%	-66%
Coimbatore	1431	1099	526	-52%	-63%
Lucknow	1199	970	297	-69%	-75%
Bhubaneshwar	1011	610	121	-80%	-88%
Top 15 tier 2 cities	31868	38755	28721	-26%	-10%

Western India comprising Ahmedabad, Surat, Gandhi Nagar, Vadodara, Nashik, Nagpur and Goa saw 6% YoY and 18% QoQ decline in launches in Q3 2025. The western region accounted for 78% of the total launches.

Northern India comprising Lucknow, Mohali and Jaipur saw 27% YoY and 57% QoQ decline in launches in Q3 2025.

Southern India comprising Coimbatore, Trivandrum and Kochi saw 8% YoY and 19% QoQ decline in launches in Q3 2025.

Central and Eastern India comprising Bhopal and Bhubaneshwar saw 17% YoY and 26% QoQ decline in launches in Q3 2025.