Housing sales in 15 tier-II cities dip 8 pc to 43,781 units in Jan-Mar: PropEquity

New Delhi, Jun 1 (PTI) Housing demand in 15 major tier II cities remained subdued in January-March period as sales declined 8 per cent annually to 43,781 units, according to a report by PropEquity.

Real estate data analytics firm PropEquity , however, highlighted that sales in value terms increased 6 per cent to Rs 40,443 crore during the first quarter of this calendar year.

In the same period of 2024, housing sales in volume stood at 47,378 units while in value terms at Rs 38,102 crore.

These 15 tier II cities are Ahmedabad, Surat, Vadodara, Gandhi Nagar, Nashik, Nagpur, Goa, Lucknow, Jaipur, Mohali, Visakhapatnam, Kochi, Coimbatore, Bhopal and Bhubaneswar.

Samir Jasuja, Founder and CEO, PropEquity said, "the lesser supply in March quarter resulted in lower sales in tier 2 cities. State capitals performed relatively better." He said the demand continues to be strong on improving physical and social infrastructure.

"RBI has made 50 basis points cut in repo rate since January 2025 and is expected to cut rates further. As this gets transmitted by banks, home loans will decline going forward thereby giving a boost to housing demand," Jasuja said.

Lucknow witnessed maximum 25 per cent increase in number of units sold in March quarter at 1,301. 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 of 37 per cent.

In value terms, eight cities saw an increase in sales while seven witnessed decline.

Ahmedabad, the biggest market among these 15 cities, saw 1 per cent decline in sales to 14,583 units from 14,780 units, but sales value grew 7 per cent to Rs 13,565 crore from Rs 12,730 crore.

"Tier-II cities are rapidly emerging as prominent housing markets, driven by expanding corporate presence, employment opportunities, and aggressive infrastructure development. These cities are witnessing a transformation fuelled by strategic public and private investments. This has led to a surge in demand and property prices across various micro-markets," Mohit Malhotra, Founder & CEO of realty firm NeoLiv, said on the report.

Yashank Wason, Managing Director, Royal Green Realty, said the rise of tier-II cities such as Indore, Sonipat, and Rohtak as real estate investment hubs can largely be attributed to their advancing infrastructure.

" As metropolitan regions face saturation, these cities offer a compelling blend of opportunity and lifestyle, positioning them at the forefront of India's next real estate growth wave," he added.

Vijay Harsh Jha, founder and CEO of VS Realtors, said the marginal drop in sales volumes is temporary and demand will improve because of strong economic growth and likely reduction in interest rates on home loans. PTI MJH ANU ANU