Housing sales across top 30 Tier II cities increased 11% annually to nearly 2.08 lakh units during the last fiscal year on the back of high consumer demand driven by robust economic growth, infrastructure development and growing desire for home ownership, according to data analytics firm PropEquity.
As per the data, the sales of housing units in India’s 30 major tier II cities stood at 2.07 lakh units in 2023-24 as against 1.86 lakh units in the preceding financial year. Interestingly, the data showed that out of these 30 cities, the top 10 cities contributed 80% to the total sales.
West zone accounts for almost 70% of the total sales
West zone accounted for nearly 70% of the total sales in 30 tier II cities. Major cities in the state of Gujarat also witnessed an increase in demand.
Top 10 tier II cities Ahmedabad, Vadodara, Surat, Nashik, Gandhi Nagar, Jaipur, Nagpur, Bhubaneshwar, Visakhapatnam, and Mohali reported sales of 1.68 lakh residential units in 2023-24, up 11% from 1.51 lakh homes in 2022-23.
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Housing sales in West Zone – Ahmedabad, Vadodara, Surat, Nashik, Gandhi Nagar, Nagpur, and Goa – reported sales of 1.44 lakh residential units in 2023-24, up 11% from 1.29 lakh homes in 2022-23.
“Tier II cities performed better than Tier I cities due to lower property prices and growth potential. On the other hand, affordability makes the dream of owning a home a reality for a growing middle class. Furthermore, these cities are also experiencing economic booms due to the setting up of small and medium enterprises (SME) businesses and industries. Government push on infrastructure creation is another major reason for rising demand in Tier II cities. All these factors are creating a bullish investment,” said Samir Jasuja, founder and managing director at PropEquity.
Housing sales in West Zone- Ahmedabad, Vadodara, Surat, Nashik, Gandhi Nagar, Nagpur, and Goa- reported sales of 1.44 lakh residential units in 2023-24, up 11% from 1.29 homes in 2022-23.
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Housing sales in North Zone – Jaipur, Mohali, Lucknow, Bhopal, Chandigarh, Dehradun, Bhiwadi, Ludhiana, Agra, Sonepat, Panipat, and Amritsar- reported sales of 26,308 residential units in 2023-24, up 8% from 24,273 homes in 2022-23.
Housing sales in South Zone – Visakhapatnam, Trivandrum, Coimbatore, Kochi, Vijayawada, Mangalore, Guntur and Mysore – reported sales of 21,947residential units in 2023-24, up 8.4% from 20,244 homes in 2022-23.
Housing sales in East and Central Zone – Bhubaneswar, Bhopal, Indore and Raipur- reported sales of 15372 residential units in 2023-24, up 18% from 13011 homes in 2022-23, the report showed.
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