E-Paper
Residential plot launches cross 4.7 lakh across top cities as Tier II markets drive growth: Report
Over 4.7 lakh residential plots have been launched since 2022 across the top 10 cities. Hyderabad, Indore, and Bengaluru emerged as top 3 cities for supply
Over 4.7 lakh residential plots across the top 10 Tier I and Tier II cities were launched by developers between 2022 and 2025 (May), with realtors in the top seven Tier II cities supplying 2.43 lakh residential plots, accounting for 52% of the total plot launches, according to data released by real estate analytics firm PropEquity.
The report showed that Tier II cities have taken the lead in this trend, accounting for 52% of the total plot launches (around 2.43 lakh units). Hyderabad, Indore, and Bengaluru emerged as the top three cities in terms of cumulative supply between 2022 and May 2025, while Indore, Chennai, and Hyderabad led in 2024.
The surge comes amid growing investor interest in plots as a flexible and appreciating asset class, and developers opting for plotted developments to ensure faster cash flows and lower upfront investment. The combined estimated value of these launches stands at ₹2.44 lakh crore, the report said.
Also Read: Average prices of new housing projects increase 9% YoY across top 9 cities in FY25: PropEquity
Tier II cities lead the charge
The report showed that Tier II cities have taken the lead in this trend, accounting for 52% of the total plot launches (around 2.43 lakh units). Hyderabad, Indore, and Bengaluru emerged as the top three cities in terms of cumulative supply between 2022 and May 2025, while Indore, Chennai, and Hyderabad led in 2024 alone.
Only three Tier I cities, Hyderabad, Bengaluru, and Chennai, made it to the top 10 in terms of plot supply, collectively accounting for 48% of the launched units.
The top 10 cities for plot launches since 2022 are Hyderabad, Indore, Bengaluru, Chennai, Nagpur, Jaipur, Coimbatore, Mysore, Raipur, and Surat, the report showed.
Shift in investment preferences post-pandemic
Samir Jasuja, founder and CEO of PropEquity, attributed the spike in interest to changing post-pandemic preferences among buyers and investors. “Residential plots have emerged as a safe haven, offering liquidity, faster price appreciation, and the ability to customise one’s home,” he said. “For developers, plotted developments offer faster sales cycles and lower construction liabilities compared to apartments.”
He said that while demand for apartments, floors, and villas has shown early signs of weakness in the first half of 2025, plots continue to gain traction, especially in cities like Indore, Coimbatore, Mysore, and Raipur, where prices have appreciated significantly.
Also Read: Housing sales in top 15 Tier 2 cities rise 4%, sales value up 20% in 2024: PropEquity
Price surge amid supply dip in 2024
The report said even as demand has remained strong, the overall supply of residential plots in the top 10 cities dropped 23% year-on-year in 2024, totalling 1,26,556 units, following a 24% Y-o-Y growth in 2023. In 2025 so far (Jan–May), developers have launched 45,591 plots, 36% of 2024's supply and 28% of the previous year’s.
Only three cities, Chennai (27%), Coimbatore (40%), and Surat (2%), recorded a rise in supply in 2024. Other major cities, including Hyderabad and Bengaluru, witnessed a dip.
Despite the supply contraction, prices surged. The weighted average launch price rose 27% year-on-year in 2024 to ₹3,679 per sq. ft., translating to ₹33,111 per sq. yard or ₹39,586 per sq. meter, the report said.
Indore led the country in plot launches in 2024 with 26,538 units, followed by Chennai and Hyderabad, indicating a growing appetite for plotted developments outside traditional metros.
