Housing sales in top 15 Tier 2 cities rise 4%, sales value up 20% in 2024: PropEquity
Housing sales in India’s top 15 tier 2 cities rose by 4% to 1.78 lakh units with sales value increasing by 20% to touch ₹1.52 lakh crore in 2024
Housing sales in India’s top 15 tier 2 cities rose by 4% to 1.78 lakh units with sales value increasing by 20% to touch ₹1.52 lakh crore in 2024 on the back of higher volumes and rise in prices, according to NSE-listed real estate data analytics firm PropEquity.
PropEquity on February 12 released the data for 15 major tier-II cities where total housing sales rose 4% to 1.78 lakh units in 2024 from 1.71 lakh units in the preceding year. The sales value increased 20% to ₹1.52 lakh crore in 2024 from ₹1.27 lakh crore in 2023.
Housing sales rose the most in Coimbatore at 36% and fell the maximum in Visakhapatnam at 21% in 2024 while Bhubaneswar recorded the highest growth in sales value at 47% while Nashik recorded 2% decline in sales value, the analysis showed.
Ahmedabad was at the top in sales value among 15 tier II cities. The city sold homes worth ₹49,421 crore in 2024, a 17% rise from ₹42,063 crore in the preceding year.
The 15 cities that were part of the analysis included Ahmedabad, Surat, Vadodara, Gandhi Nagar, Nashik, Jaipur, Nagpur, Bhubaneswar, Mohali, Visakhapatnam, Lucknow, Coimbatore, Goa, Bhopal and Trivandrum.
Budget 2025 announcement to give a boost to housing demand in Tier 2 cities
“The Budget announcements will give a boost to housing demand in tier 2 cities and create opportunities for employment. These include proposals for development of airports, promotion of GCCs, tourism, relaxation on second homes, and more importantly tax exemption on income up to ₹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,” said Samir Jasuja, founder and CEO, PropEquity.
“Sales value have risen by 20% even as sales have increased by only 4% in 2024 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,” he said.