Housing Sales in Tier-II Cities Surge by 20% to Rs 1.52 Lakh Crore in 2024

India’s real estate market is booming, and the spotlight is now on Tier-II cities. In 2024, housing sales in the top 15 Tier-II cities grew by 4%, reaching 1,78,771 units, while the total sales value saw a remarkable 20% increase, reaching Rs 1,52,552 crore. According to a report by real estate data analytics firm PropEquity, the sector saw substantial growth compared to 2023, when 1,71,903 units were sold with a total value of Rs 1,27,505 crore.

Key Trends Across Regions

1. Western India (7 Cities)

Western India, comprising seven Tier-II cities, recorded a 3.4% increase in sales, rising from 1,34,031 units in 2023 to 1,38,554 units in 2024. The total sales value surged by 18% to Rs 1,10,939 crore.

• Surat led the sales growth with a 15% increase.
• Gandhi Nagar (8%), Goa (5%), Ahmedabad (4%), and Nagpur (3%) also saw positive growth.
• However, Nashik and Vadodara saw a decline in sales by 10% and 3%, respectively.
• Nashik was the only city in the region where sales value dropped (by 2%).

2. Southern India (3 Cities)

The three southern Tier-II cities collectively sold 10,941 units in 2024, up 2.75% from 10,648 units in 2023. The total sales value increased by 15% to Rs 11,404 crore.

• Coimbatore saw the highest jump in housing sales at 36%, followed by Trivandrum at 16%.
• Visakhapatnam, however, experienced a sharp 21% decline in sales and a 1% drop in sales value.

3. Northern India (3 Cities)

The northern Tier-II cities registered a total of 18,889 housing units sold in 2024, marking a 2.5% rise from 18,420 units in 2023. The sales value rose significantly by 23% to Rs 19,127 crore.

• Jaipur saw the highest growth in sales value at 39%, followed by Mohali at 18% and Lucknow at 5%.
• In terms of units sold, Jaipur led with a 5% increase, while Lucknow grew by 1%.
• Mohali, however, recorded a slight 1% drop in sales.

4. Eastern and Central India (2 Cities)

Two Tier-II cities in eastern and central India recorded a strong 18% increase in housing sales, rising from 8,804 units in 2023 to 10,387 units in 2024. Sales value jumped by 45% to Rs 11,082 crore.

• Bhubaneswar saw a remarkable 47% rise in sales value and a 23% growth in units sold.
• Bhopal’s sales value increased by 38%, with a 10% rise in units sold.

Why Are Tier-II Cities Booming?

Experts suggest that increasing demand for affordable housing, improved infrastructure, and urban migration have made Tier-II cities attractive destinations for homebuyers and investors alike.

Aakash Ohri, Joint MD & Chief Business Officer of DLF Homes, emphasized the advantages of Tier-II cities, stating, “These locations offer a serene, green, and well-planned lifestyle while providing amenities, security, and investment appreciation on par with metro cities. Luxury developments are no longer confined to metropolitan areas, as both local buyers and those from larger cities are increasingly drawn to high-end residences in smaller cities.”

Similarly, Mohit Malhotra, Founder & CEO of NeoLiv, noted that “Tier-II cities have emerged as strong destinations, offering a sense of community, lower living costs, and significant potential for appreciation. With increasing urban migration, infrastructural advancements, and rising demand for premium yet affordable housing, now is the ideal time to invest in these emerging destinations for long-term growth and sustained value.”

With increasing migration, better infrastructure, and rising demand for premium yet affordable homes, Tier-II cities are set to remain key players in India’s real estate market. As sales and property values continue to rise, now may be the perfect time for potential buyers and investors to consider these emerging hotspots.