Top 15 Tier-2 cities see 6% growth in home sales value in Q1 2025
The value of residential properties sold across India's leading 15 tier 2 cities showed a 6% rise to Rs 40,443 crore during Q1 2025, compared to Rs 38,102 crore in Q1 2024.
PropEquity, an NSE-listed property analytics firm, reported that Lucknow led the growth amongst tier 2 cities with a 25% increase, selling 1301 units in Q1 2025. Coimbatore followed with 21% growth, Gandhi Nagar with 18%, and Mohali with 2%.
The total units sold decreased by 8% to 43,781 units in Q1 2025, down from 47,378 units in the corresponding period of the previous year.
"The decline in sales in tier 2 cities in January-March period is in line with trends witnessed in tier 1 cities. However, 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 according to an ET repport
by Taboola
by Taboola
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Among the remaining 11 cities, sales declined in Q1 2025, with Visakhapatnam showing the steepest fall at 37%, whilst Ahmedabad and Goa experienced minimal declines of 1% each.
Coimbatore achieved the highest increase in sales value at Rs 1120 crore in Q1 2025, representing 52% growth. Lucknow followed at 48%, Gandhi Nagar at 36%, whilst Mohali and Goa each grew by 17%. Ahmedabad and Bhubaneshwar both increased by 7%, and Kochi by 5%.
Seven cities experienced declining sales values in Q1 2025, with Visakhapatnam showing the largest decrease at 35%, whilst Vadodara and Nagpur recorded the smallest declines at 1% each.
"Demand in tier 2 cities, however, remains robust as people have shown greater preference for organised living. Urban rejuvenation efforts, improved connectivity & social infrastructure, and 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," Jasuja said.
The six State Capitals - Gandhi Nagar, Jaipur, Bhubaneshwar, Lucknow, Goa and Bhopal - experienced a 5% reduction in sales but a 17% increase in sales value, comprising 25% of sales and 30% of sales value in Q1 2025.
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