Latest news with #StateCapitals
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Business Standard
3 days ago
- Business
- Business Standard
Homes under Rs 50 lakh vanish as Tier 2 housing supply shrinks 35% in Q1
Housing supply in India's top 15 tier 2 cities fell 35% to just 30,155 units in the January-March period of 2025 with 48% of the launches in the Rs 50 lakh to Rs 1 crore price range, said a report by NSE-listed real estate data analytics firm PropEquity. The supply stood at 45,901 units with 36% of the launches in price range Rs 50L-1cr in Q1 2024. Bhubaneshwar witnessed the highest decline at 72% to 772 units in Q1 2025 while Nashik saw the least decline at 2% to 2466 units. The report further added that the Eastern and Central India with 68% fall in new launches in Q1 2025 saw the highest decline followed by 55% in Northern India, 28% in Western India and 26% in Southern India. The seven State Capitals in the top 15 tier 2 cities saw 43% decline in supply in Q1 2025. The seven State Capitals in the top 15 tier 2 cities saw 43% decline in supply in Q1 2025. 'The decline in supply is a result of cautious approach and shifting priorities by developers. Financially robust developers with strong balance sheet look to launch premium homes in order to increase their profit margin. As a result, supply of homes under Rs 50 lakh has seen a consistent decline due to its unviability. Meanwhile, homes priced between Rs 1-2 crore have not only seen a 17% Y-o-Y growth in supply but also its supply share increasing from 18% to 23%.' 'With home loan rates hovering around 8-8.5%, the recent reduction of 50bps in repo rate by the RBI will further drive down the home loan rates thereby providing an impetus in the Rs 50L-2cr priced homes in tier 2 cities," said Samir Jasuja, Founder and CEO, PropEquity. Housing units priced under Rs 2 crore accounted for 95% of the total supply in Q1 2025, up from 87% in the same period last year. The supply of units priced under Rs 50 lakh, more than halved to 7124 units in Q1 2025 as against 15420 units in the same period last year. Its share to total supply fell from 33% to 24% in Q1 2025. Similarly, supply of units priced between Rs 50 lakh and Rs 1 crore dipped by 12% and its share rose from 36% to 48% in Q1 2025. The supply of units priced between Rs 1-2 cr dipped by 17% and its share rose from 18% to 23% in Q1 2025. Housing units priced under Rs 2 crore accounted for 95% of the total supply in Q1 2025, up from 87% in the same period last year. Supply of units priced Rs 2 crore and above dipped by 73% in Q1 2025 and its share dipped from 13% to 5% in Q1 2025. State Capitals saw 90% drop in supply of units priced under Rs 50 lakh and 13% drop in supply of units priced between Rs 50L-Rs 1 crore in Q1 2025. However, supply of units priced between Rs 1-2 crore rose by 31%.
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Business Standard
02-06-2025
- Business
- Business Standard
Tier II realty sales dip in Q1 but Lucknow bucks trend with 48% value jump
While housing sales across India's top 15 tier 2 cities dropped 8% year-on-year in Q1 2025, Lucknow bucked the trend with a 25% surge in residential unit sales, according to a report by real estate data analytics firm PropEquity. The city recorded 1,301 units sold — the highest growth among tier 2 cities — alongside a 48% jump in sales value to Rs 1,797 crore, driven by strong demand for organized housing, improved infrastructure, and growing employment opportunities. According to the report, Lucknow with 25% increase in number of units sold in Q1 2025 at 1301 units registered the highest growth amongst top 15 tier 2 citiesdhinagar (18%), and Mohali (2%). However, the overall tier 2 market saw a contraction, with sales volume falling to 43,781 units from 47,378 in Q1 2024, even as sales value rose 6% to ₹40,443 crore. Ahmedabad retained its top position in terms of total units sold (14,583 units) and sales value (₹13,565 crore). Western India, including Ahmedabad, Surat, and Gandhinagar, contributed 79% of total units sold and 74% of the overall sales value. State capitals — including Lucknow, Jaipur, Gandhinagar, Bhubaneswar, Goa, and Bhopal — accounted for 25% of all sales and 30% of the total sales value, showing a 17% increase in revenue despite a 5% drop in sales volume. As seen in the table below, the six State Capitals in top 15 tier 2 cities, namely Gandhi Nagar, Jaipur, Bhubaneshwar, Lucknow, Goa and Bhopal, saw 5% decline in sales and 17% increase in sales value, accounting for 25% of sales and 30% of sales value in Q1 2025. Region-wise highlights: Western India, comprising Ahmedabad, Surat, Vadodara, Gandhi Nagar, Nashik, Nagpur and Goa, saw 6% decline in number of units sold in Q1, 2025. However, sales value rose by 6% in Q1, 2025. Northern India, comprising Lucknow, Jaipur and Mohali saw 14% decline in number of units sold in Q1, 2025. However, sales value rose by 14% in Q1, 2025. Southern India, comprising Visakhapatnam, Kochi and Coimbatore, saw 12% decline in number of units sold and 1% decline in sales value in Q1, 2025. Central and Eastern India, comprising Bhopal and Bhubaneshwar, saw 18% decline in number of units sold in Q1, 2025. However, sales value remained flat. '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. He added that the dip in transactions is partly due to lower new supply. 'Despite a slowdown in sales volume, demand in tier 2 cities is strong, fueled by infrastructure upgrades, job growth, and falling interest rates. We expect a rebound as banks pass on recent RBI rate cuts.' PropEquity tracks data from over 1.7 lakh real estate projects across 44 cities, providing business intelligence to developers, investors, and policymakers.
Time of India
01-06-2025
- Business
- Time of India
Value of homes sold in India's top 15 tier 2 cities increased by 6% in Q1 202
Value of homes sold in India's top 15 tier 2 cities has increased by 6% to Rs 40,443 crore in Q1 2025 as against Rs 38,102 crore in the same period last year. According to NSE-listed real estate data analytics firm PropEquity, Lucknow with 25% increase in number of units sold in Q1 2025 at 1301 units registered the highest growth amongst top 15 tier 2 cities. This was followed by Coimbatore 21%, Gandhi Nagar 18% and Mohali 2%. Overall, the sale fell by 8% to 43,781 units in Q1 2025 as compared to 47,378 units in the same period last 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. Other 11 cities saw decline in number of units sold in Q1 2025 with Visakhapatnam registering the highest decline (37%) and Ahmedabad and Goa recording the least decline (1% each). Coimbatore with 52% growth saw the highest increase in sales value at Rs 1120 crore in Q1, 2025. This was followed by Lucknow at 48%, Gandhi Nagar 36%, Mohali and Goa at 17% each, Ahmedabad and Bhubaneshwar at 7% each and Kochi 5%. 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). '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 in top 15 tier 2 cities, namely Gandhi Nagar, Jaipur, Bhubaneshwar, Lucknow, Goa and Bhopal, saw 5% decline in sales and 17% increase in sales value, accounting for 25% of sales and 30% of sales value in Q1 2025.
