Tier II Housing Prices Surge Up to 94% - PropEquity

New Delhi, Jul 18 (PTI) Housing prices in top 30 Tier II markets have risen by up to 94 per cent in the last four years on high demand for residential properties, according to real estate data analytic firm PropEquity.

The data relates to primary residential markets of the 30 markets.

PropEquity, which is listed on stock exchanges, has compared the average launch price of projects during 2023-24 fiscal year as against the rates during 2019-20.

The 30 markets are Amritsar, Mohali, Ludhiana, Chandigarh, Panipat, Dehradun, Bhiwadi, Sonepat, Jaipur, Agra, Lucknow, Bhopal, Indore, Visakhapatnam, Vijayawada, Guntur, Mangalore, Mysore, Coimbatore, Kochi, Trivandrum, Raipur, Bhubaneshwar, Ahmedabad, Gandhi Nagar, Vadodara, Surat, Nashik, Nagpur and Goa.

As per the data, as many as 24 Tier II markets witnessed a double-digit growth in housing prices while the remaining six recorded a single digit price appreciation.

Out of these markets, the top 10 witnessed an increase in residential property prices ranging from 54 per cent to 94 per cent.

In Agra, housing prices rose maximum by 94 per cent to Rs 7,163 per square feet in 2023-24 from Rs 3,692 per square feet in 2019-20.

Goa saw a price appreciation of 90 per cent, Ludhiana 89 per cent, Indore 72 per cent, Chandigarh 70 per cent, Dehradun 68 per cent, Ahmedabad 60 per cent, Bhubaneswar 58 per cent, Mangalore 57 per cent and Trivandrum 54 per cent.

Samir Jasuja, Founder and CEO at PropEquity, said, “Tier II cities have witnessed a significant price appreciation primarily due to increased demand, as absorption has been significantly higher than new launches in the last five fiscal years."

The rise in consumer confidence fuelled by economic growth, a boost in connectivity, infrastructure development and strong job markets has driven up prices in double digits in the majority of these markets, he added.

Among other markets that recorded double-digit increase, Mysore witnessed a price rise of 53 per cent, Bhopal 52 per cent, Nagpur 51 per cent, Gandhi Nagar 49 per cent, Jaipur 49 per cent, Vadodara 48 per cent, Nashik 46 per cent, Surat 45 per cent, Kochi 43 per cent, Mohali 39 per cent, Lucknow 38 per cent, Coimbatore 38 per cent, Raipur 26 per cent and Visakhapatnam 11 per cent.

Gurugram-based property brokerage firm VS Realtors (I) Pvt Ltd founder Vijay Harsh Jha attributed the rise in prices to massive infrastructure development and improved connectivity across India.

"Not just price of new launch projects but also prices in secondary market have seen a steep rise in the last few years," he added.

Yashank Wason, Managing Director, Royal Green Realty, said this is a function of the rising demand in smaller cities.

"Bahadurgarh is a quintessential example of improved connectivity and infrastructure development paving the way for residential property price appreciation," he added.