Housing sales in top 15 Tier 2 cities fall 8%, sales value up 6% in Q1 2025: Report

Tier 2 cities such as Visakhapatnam, Jaipur, Bhopal, and Nagpur experienced a decline in housing unit sales, a report by PropEquity said

Housing sales in India’s top 15 Tier 2 cities fell by 8% to 43,781 units in Q1 2025, compared to 47,378 units in the same period last year. On the other hand, sales value rose by 6% to ₹40,443 crore in Q1 2025, compared to ₹38,102 crore in the same period last year, said a report by data analytics firm PropEquity.

Housing sales in India’s top 15 Tier 2 cities fell by 8% to 43,781 units in Q1 2025, compared to 47,378 units in the same period last year. (Picture for representational purposes only) (Mehul R Thakkar/HT)

According to the report, Lucknow registered the highest growth amongst the top 15 Tier 2 cities, with a 25% increase in the number of units sold in Q1 2025, at 1301 units. During the same period last year, 1,040 units were sold in Lucknow.

This was followed by Coimbatore, 21%, Gandhi Nagar, 18%, and Mohali, 2%.

The other 11 cities saw a decline in the number of units sold in Q1 2025, with Visakhapatnam registering the highest decline (37%) and Ahmedabad and Goa recording the least decline (1% each). Jaipur reported a 32% fall in sales, followed by Bhopal 31%, and Nagpur 21%.

Coimbatore witnessed the highest increase in sales value

According to the report, while sales went down in 11 out of the 15 Tier-2 cities of India, sales value went down in 8 out of the 15 Tier-2 cities.

Coimbatore, with 52% growth, saw the highest increase in sales value at ₹1120 crore in Q1, 2025. This was followed by Lucknow at 48%, Gandhi Nagar at 36%, Mohali and Goa at 17% each, Ahmedabad and Bhubaneswar at 7% each, and Kochi at 5%.

The other 7 cities saw a decline in sales value in Q1 2025, with Visakhapatnam recording the highest decline (35%) and Vadodara and Nagpur registering the least decline (1% each).

“The decline in sales in Tier 2 cities in the January-March period is in line with trends witnessed in Tier 1 cities. However, a lesser supply in this quarter resulted in lower sales in Tier 2 cities. State capitals performed relatively better," said Samir Jasuja, founder and CEO, PropEquity.

Jasuja said that demand in Tier 2 cities, however, remains robust as people have shown a greater preference for organised living. 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 a 50bps 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 added.