Though there  was a marginal decline in overall home sales across top cities in India in 2024,Tier 2 cities emerged as bright stars, registering YoY rise in residential sales.   

According to  a latest report of PropEquity, residential sales in India’s top 15 tier 2 cities rose by 4% to 1,78,771 units with sales value rising by 20% to INR 1,52,552 crore in 2024.The housing sales stood at 1,71,903 units while sales value stood at Rs 1,27,505 crore in 2023.Housing sales rose the most in Coimbatore at 36% and fell the most in Visakhapatnam at 21% in 2024 while Bhubaneswar recorded the highest growth in sales value at 47% . Nashik however  recorded 2% decline in sales value.

“The Budget announcements will give a boost to housing demand in tier 2 cities. These include proposals for development of airports, promotion of GCCs, tourism, relaxation on second homes, and more importantly tax exemption on income up to Rs 12 lakhs. The continued focus on infrastructure development like metro rail, highways and expressways will augment the growth in all segments of the real estate sector, says Samir Jasuja, Founder & CEO, PropEquity”

Sales values have risen by 20% even as sales have increased by only 4% in 2024. This, according to Jasuja, 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.

Region-wise housing sales trend

Western India

According to the report, the seven cities in western India saw sales of 1,38,554 units in 2024 as compared to 1,34,031 units in 2023, up 3.4%. The sales value grew by 18% to Rs 1,10,939 crore in 2024.Housing sales was led by Surat with 15% rise, followed by Gandhi Nagar 8%, Goa 5%, Ahmedabad 4%, Nagpur 3%. Housing sales fell in Nashik by 10% and Vadodara by 3%.Only Nashik witnessed a decline in sales value at 2%.

Southern India

The three cities in southern India saw sales of 10941 units in 2024 as compared to 10648 units in 2023, up 2.75%. The sales value grew by 15% to Rs 11,404 crore.Housing sales was led by Coimbatore with 36% rise followed by Trivandrum 16%. Sales declined in Visakhapatnam by 21%.Only Visakhapatnam witnessed a decline in sales value at 1%.

Northern India

Sales in the three cities of Northern India stood at 18889 units in 2024 as compared to 18420 units in 2023, up 2.5%. Sales value grew by 23% to Rs 19,127 crore in 2024.Housing sales rose by 5% in Jaipur and 1% in Lucknow while it fell by 1% in Mohali. Sales value grew by 39% in Jaipur, 5% in Lucknow and 18% in Mohali.

Eastern and Central India

Housing sales in the two eastern and central Indian cities stood at 10387 units in 2024 as compared to 8804 units in 2023, up 18%. Sales value grew by 45% to Rs 11,082 crore in 2024.Housing sales rose 23% in Bhubaneswar and 10% in Bhopal. Sales value grew by 38% in Bhopal and 47% in Bhubaneswar.