Housing Sales in Top 15 Tier 2 Cities Fall 8%, Sales Value up 6% in Q1 2025: Prop Equity

New Delhi, June 01, 2025: Housing sales in top 15 tier 2 cities fell by eight per cent to 43,781 units in Q1 2025 compared to 47,378 units in the same period last year with sales value, however, rising by six per cent to INR 40,443 crore in Q1 2025 as against INR 38,102 crore in the same period last year, according to a PropEquity report.

Lucknow, with a 25 per cent increase in the number of units sold in Q1 2025 at 1,301 units, registered the highest growth. This was followed by Coimbatore 21 per cent, Gandhinagar 18 per cent and Mohali 2 per cent.

Other 11 cities saw a decline in the number of units sold in Q1 2025 with Visakhapatnam registering the highest decline (37 per cent) and Ahmedabad and Goa recording the least decline (1 per cent each).

Coimbatore, with 52 per cent growth, saw the highest increase in sales value at INR 1120 crore in Q1 2025. This was followed by Lucknow at 48 per cent, Gandhinagar 36 per cent, Mohali and Goa at 17 per cent each, Ahmedabad and Bhubaneshwar at 7 per cent each and Kochi 5 per cent.

The other seven cities saw a decline in sales value in Q1 2025 with Visakhapatnam recording the highest decline (35 per cent) and Vadodara and Nagpur registering the least decline (1 per cent each).

“The decline in sales in tier 2 cities in the 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.

“Demand in tier 2 cities, however, remains robust as people have shown a greater preference for organised living. Urban rejuvenation efforts, improved connectivity and 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.”

He added, “The RBI has made 50bps cut in repo rate since January 2025 and is expected to cut rates further. As this gets transmitted by banks, home loans will decline going forward, thereby giving a boost to housing demand.”

The six State capitals in the top 15 tier 2 cities, Gandhinagar, Jaipur, Bhubaneshwar, Lucknow, Panaji and Bhopal, saw a 5 per cent decline in sales and 17 per cent increase in sales value, accounting for 25 per cent of sales and 30 per cent of sales value in Q1 2025.

Region-wise trend

Western India, comprising Ahmedabad, Surat, Vadodara, Gandhinagar, Nashik, Nagpur and Goa, saw a six per cent decline in the number of units sold in Q1, 2025. However, sales value rose by six per cent in Q1 2025.

Northern India, comprising Lucknow, Jaipur and Mohali, saw a 14 per cent decline in the number of units sold in Q1 2025. However, sales value rose by 14 per cent in Q1 2025.

Southern India, comprising Visakhapatnam, Kochi and Coimbatore, saw a 12 per cent decline in the number of units sold and a 1 per cent decline in sales value in Q1 2025.

Central and eastern India, comprising Bhopal and Bhubaneshwar, saw an 18 per cent decline in the number of units sold in Q1 2025. However, sales value remained flat.