Housing sales in india’s top 15 tier-2 cities decline by 8%: report - the statesman

Housing sales in India’s top 15 Tier 2 cities declined by 8 per cent year-on-year to 43,781 units in the first quarter of 2025, down from 47,378 units in the same period last year, according

to a report released by NSE-listed real estate data analytics firm PropEquity. Despite the fall in volume, the total sales value rose by 6 per cent to Rs 40,443 crore, compared to Rs 38,102

crore in Q1 2024. The report points to a growing trend of higher-value housing transactions even amid weakening sales volumes. Advertisement Among the 15 cities tracked, Lucknow recorded

the highest growth in housing unit sales, rising by 25 per cent year-on-year to 1,301 units in Q1 2025. It was followed by Coimbatore (21 per cent), Gandhi Nagar (18 per cent), and Mohali (2

per cent). In contrast, 11 cities reported a decline in sales, with Visakhapatnam seeing the sharpest fall at 37 per cent. Ahmedabad and Goa registered the least decline at 1 per cent each.

Advertisement In terms of sales value, Coimbatore led the pack with a 52 per cent increase to Rs 1,120 crore, followed by Lucknow at 48 per cent, Gandhi Nagar at 36 per cent, and Mohali and

Goa at 17 per cent. Ahmedabad and Bhubaneswar posted 7 per cent growth each, while Kochi grew by 5 per cent. Meanwhile, seven cities reported a drop in sales value, with Visakhapatnam again

showing the largest decline at 35 per cent. Vadodara and Nagpur saw marginal drops of 1 per cent each. The six state capitals included in the study—Gandhi Nagar, Jaipur, Bhubaneshwar,

Lucknow, Goa, and Bhopal—saw a combined 5 per cent drop in housing sales but posted a 17 per cent rise in overall sales value. These cities accounted for 25 per cent of total units sold and

contributed 30 per cent of the total sales value in Q1 2025. Sales were down 6 per cent, but value up 6 per cent for the Western India cities, including Ahmedabad, Surat, Vadodara,

Gandhinagar, Nashik, Nagpur, and Goa. For Northern India, including Lucknow, Jaipur, Mohali, the sales were down 14 per cent, with a 14 per cent increase in value. In South – Visakhapatnam,

Kochi, Coimbatore – the sales were down 12 per cent while the value was down 1 per cent. Central and Eastern India, comprising Bhopal, Bhubaneswar, witnessed a fall in sales by 18 per cent,

with sales value flat. The contrasting trends between unit sales and value growth suggest a shift in buyer preference towards higher-end properties in Tier 2 cities. While demand in volume

terms may be slowing, developers and investors may find opportunities in the mid to premium segments, particularly in markets like Coimbatore and Lucknow, which have emerged as strong

performers both in unit sales and revenue. Advertisement