Archive · 1 Jun 2025
Tier-II City House Sales Dip, Value Rises in Q1 2025
Imagine lots of houses being sold in smaller cities, like Ahmedabad and Lucknow.
In the beginning of 2025, fewer houses were sold compared to last year, but the total amount of money people spent on them actually went up!
This is because there were fewer houses available to buy.
Experts say that because the government is making it easier to get loans, more people will be able to buy houses.
Also, these smaller cities are growing because more companies are opening up there, giving people more jobs, and the government is building better roads and other things.
Housing sales in tier-II cities decreased by 8% in Q1 2025 compared to the same period last year.
The overall transaction value in these cities increased by 6% during the same period.
Lucknow saw the highest year-on-year increase in unit sales among the surveyed cities, at 25%.
Visakhapatnam experienced the steepest decline in sales volume, dropping by 37%.
Experts cite a combination of factors, including reduced supply and infrastructure improvements, influencing these trends.
- Who
- The report was compiled by PropEquity.
- What
- Housing sales in tier-II cities saw an 8% drop in volume but a 6% rise in value.
- When
- Housing sales data covers the period of January-March 2025 (Q1 2025).
- Where
- The analysis includes 15 tier-II cities across India, including Ahmedabad, Lucknow, and Visakhapatnam.
- Why
- The decline in sales volume is attributed to lower supply, while the rise in value is due to factors such as infrastructure improvements, growing corporate presence, and anticipated lower home loan rates.
Optimistic View
Cautionary View
Market Outlook
Optimistic View
The current decline is seen as temporary and will revive with strong economic growth and lower home loan rates.
Cautionary View
The current decline is concerning, indicating potential market instability. This is further confirmed by a reduced supply of houses.
- Decline in Sales Volume
- 8%
- Increase in Transaction Value
- 6%
- Total Housing Units Sold (Q1 2025)
- 43,781
- Total Transaction Value (Q1 2025)
- Rs 40,443 crore
- Lucknow YoY increase in units sold
- 25%
- Visakhapatnam YoY decrease in units sold
- 37%