Archive · 2 Jun 2025
Indian Tier 2 Cities Housing Sales Dip Despite Value Rise in Q1 2025
In the first three months of 2025, fewer homes were sold in India's smaller cities compared to last year, about an 8% drop.
But, the total value of those sales went up, by 6%, which suggests that either more expensive homes were sold or the prices of homes increased.
The main reason for fewer sales was a lack of new houses being built.
Even though there were fewer homes available, people still wanted to buy them because of good infrastructure, better transportation and job opportunities.
Some regions, like Visakhapatnam, saw a big drop in sales, while others, like the state capitals, did better.
Housing sales in top 15 Tier 2 cities in India decreased by 8% in Q1 2025.
Overall sales value increased by 6% in the same period.
The decline in sales volume was attributed to reduced supply.
Western India accounted for the largest share of sales volume.
State capitals performed better than the overall market.
- Who
- Report by PropEquity
- What
- Housing sales in top 15 Tier 2 Indian cities decreased by 8% in Q1 2025 while sales value increased by 6%
- When
- Q1 2025 (January-March)
- Where
- India's top 15 tier 2 cities
- Why
- Decline due to reduced supply and lack of new launches; Demand remains robust due to infrastructure and job growth.
- Decline in Sales Volume
- 8%
- Increase in Sales Value
- 6%
- Total Units Sold (Q1 2025)
- 43,781
- Total Sales Value (Q1 2025)
- ₹40,443 crore
- Decline in Central & Eastern India
- 18%
- Decline in Visakhapatnam
- 37%
- Sales drop in State Capitals
- 5%