Tier-II Housing Sales Surge 20% to Rs 1.53 Lakh Cr in 2024: PropEquity

New Delhi, Feb 12 (PTI) Housing sales across 15 top tier-II cities rose 20 per cent in value terms last calendar year to more than Rs 1.52 lakh crore on higher volume and price appreciation, according to PropEquity.

Real estate data analytics firm PropEquity on Wednesday released the data for 15 major tier-II cities where total housing sales rose 4 per cent to 1,78,771 units in 2024 from 1,71,903 in the preceding year.

In value terms, the sales increased 20 per cent to Rs 1,52,552 crore in 2024 from Rs 1,27,505 crore in 2023.

These 15 cities are -- Ahmedabad, Surat, Vadodara, Gandhi Nagar, Nashik, Jaipur, Nagpur, Bhubaneswar, Mohali, Visakhapatnam, Lucknow, Coimbatore, Goa, Bhopal and Trivandrum.

As per the data, housing sales rose the most in Coimbatore at 36 per cent and fell maximum in Visakhapatnam by 21 per cent in 2024.

Bhubaneswar recorded the highest growth in sales value at 47 per cent while Nashik recorded a 2 per cent decline in sales value.

Samir Jasuja, Founder & CEO, PropEquity, said, "Sales value have risen by 20 per cent even as sales volumes have increased by only 4 per cent in 2024 points to a rapid increase in price of homes in these cities owing to factors like rise in cost of raw materials, speculative investments etc. which may impact the real estate market."

Jasuja said the Budget announcements will give a boost to housing demand in tier-II cities and create opportunities for employment.

Ahmedabad was at the top in sales value among 15 tier II cities. The city sold homes worth Rs 49,421 crore in 2024, a 17 per cent rise from Rs 42,063 crore in the preceding year.

Commenting on the report, Madhur Gupta CEO of Hero Realty, said "The influx of employment opportunities, lower cost of living, and affordable housing are key factors driving real estate demand and supply in Tier 2 cities."

Yashank Wason, Managing Director, Royal Green Realty said the housing demand in tier-II has risen.

"With hyper-congestion and dwindling quality housing supply in Tier-1 cities, the next generation of homebuyers are increasingly looking towards Tier-2 cities," he added.