Jaipur Realty Market Sees 5% Sales Increase and 39% Value Rise: PropEquity Report

Jaipur’s housing market experienced growth in 2024, with sales increasing by 5% to 10,695 units, according to data from real estate analytics firm PropEquity. The value of these sales saw a notable rise of 39%, reaching Rs 8,388 crore, up from Rs 6,019 crore in 2023. This increase in sales value has been attributed to rising input costs, including land prices, labor expenses, and construction materials. Additionally, developers have been focusing on launching premium and luxury housing projects, contributing to the higher transaction values.

PropEquity’s data also highlighted trends across 15 major tier-II cities:

• Total housing sales increased by 4% in 2024, reaching 1,78,771 units, compared to 1,71,903 units in the previous year.
• In terms of value, sales saw a 20% rise, reaching Rs 1,52,552 crore in 2024, up from Rs 1,27,505 crore in 2023.

The study covered cities such as Ahmedabad, Surat, Vadodara, Gandhinagar, Nashik, Jaipur, Nagpur, Bhubaneswar, Mohali, Visakhapatnam, Lucknow, Coimbatore, Goa, Bhopal, and Trivandrum.

The increase in the overall value of real estate transactions suggests a shift in buyer preference toward higher-priced properties. Factors contributing to this trend include urban expansion, infrastructure development, and improved connectivity, making premium and luxury housing projects more attractive. Developers have responded by launching projects that cater to this growing demand, leading to a rise in per-unit transaction values.

Land acquisition costs have been a significant factor influencing price escalation in Jaipur’s real estate market. The rising demand for urban space has led to higher valuations, which in turn affects the pricing of residential projects. Construction costs have also increased due to higher labor wages and material prices. Developers have adjusted their pricing strategies accordingly, passing on the costs to homebuyers.

The trend of increasing property values is not limited to Jaipur but extends to other tier-II cities as well. PropEquity’s report indicates that smaller cities are witnessing growing interest from homebuyers and investors. Improved economic activity, better employment opportunities, and enhanced infrastructure have contributed to the positive outlook for real estate in these regions. The expansion of metro networks, highway projects, and smart city initiatives has further fueled demand for housing in these cities.

Jaipur’s real estate market continues to be driven by both end-users and investors. The rising cost of living and the need for better housing options have prompted buyers to explore premium segments. Additionally, NRIs and high-net-worth individuals have shown increased interest in investing in Jaipur’s real estate market, adding to the momentum.

While the overall volume of transactions has not seen a drastic increase, the sharp rise in sales value indicates a transformation in market dynamics. The trend points toward a future where quality, location, and amenities will play a larger role in shaping property demand. As Jaipur continues to grow as a business and cultural hub, its real estate market is expected to maintain an upward trajectory, attracting further investments and development initiatives.