New Delhi, Rising housing demand is not limited to major cities as residential property sales surged 11 per cent in the last fiscal year across 30 Tier II cities to nearly 2.08 lakh units, according to PropEquity.
Real estate data analytics firm PropEquity on Friday released a report on the real estate market in Tier II cities.
The data showed that housing sales rose 11 per cent to 2,07,896 units in 2023-24, up from 1,86,951 units in the previous financial year.
Top 10 Tier II cities (Ahmedabad, Vadodara, Surat, Nashik, Gandhi Nagar, Jaipur, Nagpur, Bhubaneshwar, Visakhapatnam and Mohali) contributed 80 per cent of the total sales in 30 small cities.
These 10 cities together recorded sales of 1,68,998 residential units in 2023-24, up 11 per cent from 1,51,706 housing units in 2022-23.
The other 20 Tier II cities are Bhopal, Lucknow, Goa, Coimbatore, Raipur, Vijayawada, Indore, Kochi, Trivandrum, Mangalore, Guntur, Bhiwadi, Dehradun, Ludhiana, Chandigarh, Agra, Mysore, Sonepat, Panipat and Amritsar.
Samir Jasuja, Founder and CEO of PropEquity, said, “Tier II cities performed better than Tier I cities due to lower property prices and growth potential.”
Affordability is making the dream of home ownership a reality for a growing middle class in these smaller cities, he added.
"These cities are also experiencing economic booms due to the creation of small and medium enterprises (SMEs) and industries. The government drive for infrastructure creation is another important reason for the increase in demand in Tier II cities," he said Jasuja.
Data from publicly traded PropEquity showed that the West accounted for nearly 70 per cent of total sales in 30 Tier II cities.
Major cities in the state of Gujarat experienced high demand.
Housing sales in the western zone reported sales of 1,44,269 residential units in 2023-24, up 11 per cent from 1,29,423 housing units in 2022-23.
Residential property sales in the northern zone rose 8 per cent to 26,308 units in the last financial year from 24,273 homes in 2022-23.
The southern zone recorded sales of 21,947 units in 2023-24, 8 percent more than the 20,244 homes the previous year.
Housing sales in the eastern and central zone grew 18 per cent to 15,372 units in the last fiscal year from 13,011 units in 2022-23.
Commenting on the report, real estate firm Eldeco Group COO Manish Jaiswal said, "We are witnessing a significant transformation driven by improved infrastructure and improved connectivity."
Seeing this increase in demand, he said the company has made strategic investments in tier II cities like Ludhiana, Rudrapur and Sonipat.
Madhusudan G, CMD of Bengaluru-based Sumadhura Group, said, "Though Q2 2024 saw a temporary dip in Tier 1 cities due to Lok Sabha elections, Tier II cities are outperforming of Tier 1 primarily due to its affordability, allowing the “Aspirational middle class to own their dream home in these cities.”
Madhusudan noted that the impressive growth driven by SMEs and industries indicates positive prospects.
"In addition, mega public infrastructure projects are increasing the demand for housing in these developing cities," he added.
Real estate data analytics firm PropEquity on Friday released a report on the real estate market in Tier II cities.
The data showed that housing sales rose 11 per cent to 2,07,896 units in 2023-24, up from 1,86,951 units in the previous financial year.
Top 10 Tier II cities (Ahmedabad, Vadodara, Surat, Nashik, Gandhi Nagar, Jaipur, Nagpur, Bhubaneshwar, Visakhapatnam and Mohali) contributed 80 per cent of the total sales in 30 small cities.
These 10 cities together recorded sales of 1,68,998 residential units in 2023-24, up 11 per cent from 1,51,706 housing units in 2022-23.
The other 20 Tier II cities are Bhopal, Lucknow, Goa, Coimbatore, Raipur, Vijayawada, Indore, Kochi, Trivandrum, Mangalore, Guntur, Bhiwadi, Dehradun, Ludhiana, Chandigarh, Agra, Mysore, Sonepat, Panipat and Amritsar.
Samir Jasuja, Founder and CEO of PropEquity, said, “Tier II cities performed better than Tier I cities due to lower property prices and growth potential.”
Affordability is making the dream of home ownership a reality for a growing middle class in these smaller cities, he added.
"These cities are also experiencing economic booms due to the creation of small and medium enterprises (SMEs) and industries. The government drive for infrastructure creation is another important reason for the increase in demand in Tier II cities," he said Jasuja.
Data from publicly traded PropEquity showed that the West accounted for nearly 70 per cent of total sales in 30 Tier II cities.
Major cities in the state of Gujarat experienced high demand.
Housing sales in the western zone reported sales of 1,44,269 residential units in 2023-24, up 11 per cent from 1,29,423 housing units in 2022-23.
Residential property sales in the northern zone rose 8 per cent to 26,308 units in the last financial year from 24,273 homes in 2022-23.
The southern zone recorded sales of 21,947 units in 2023-24, 8 percent more than the 20,244 homes the previous year.
Housing sales in the eastern and central zone grew 18 per cent to 15,372 units in the last fiscal year from 13,011 units in 2022-23.
Commenting on the report, real estate firm Eldeco Group COO Manish Jaiswal said, "We are witnessing a significant transformation driven by improved infrastructure and improved connectivity."
Seeing this increase in demand, he said the company has made strategic investments in tier II cities like Ludhiana, Rudrapur and Sonipat.
Madhusudan G, CMD of Bengaluru-based Sumadhura Group, said, "Though Q2 2024 saw a temporary dip in Tier 1 cities due to Lok Sabha elections, Tier II cities are outperforming of Tier 1 primarily due to its affordability, allowing the “Aspirational middle class to own their dream home in these cities.”
Madhusudan noted that the impressive growth driven by SMEs and industries indicates positive prospects.
"In addition, mega public infrastructure projects are increasing the demand for housing in these developing cities," he added.
