Housing sales in India have demonstrated a robust uptick in the top 15 tier 2 cities, rising by 4 percent to reach a total of 1,78,771 units in 2024. This increase is significant and reflects broader trends in the sector, particularly against the backdrop of a 20 percent rise in sales value, which now stands at Rs 1,52,552 crore. The previous year, 2023, recorded housing sales of 1,71,903 units valued at Rs 1,27,505 crore. Notably, Coimbatore led the charge with an impressive sales increase of 36 percent, while Visakhapatnam faced a downturn with a 21 percent decline in sales. The growth in sales value was most pronounced in Bhubaneswar, which saw a 47 percent increase, while Nashik experienced a slight decrease of 2 percent. Samir Jasuja, the Founder & CEO of PropEquity, indicated that recent budget announcements are likely to stimulate demand for housing in these cities, emphasizing initiatives aimed at infrastructure development, such as airport expansions and tax exemptions for income up to Rs 12 lakhs. The report also highlights a substantial increase in home prices, driven by rising raw material costs and speculative investments. This trend in housing sales signals a complex interplay between demand and pricing in India’s real estate landscape.
Regional Insights: Western India Leads Sales
The real estate market in western India has shown promising growth, with the seven cities in this region recording a total of 1,38,554 housing units sold in 2024, up 3.4 percent from 1,34,031 units in 2023. The sales value in these cities escalated by 18 percent, amounting to Rs 1,10,939 crore. Surat emerged as the frontrunner in housing sales with a 15 percent rise, followed closely by Gandhi Nagar at 8 percent, Goa at 5 percent, and Ahmedabad at 4 percent. However, not all cities experienced positive trends; Nashik witnessed a 10 percent decline in sales, while Vadodara saw a drop of 3 percent. Interestingly, Nashik was also the only city to report a decrease in sales value, which fell by 2 percent. The overall performance of western India indicates a resilient market, with significant contributions from major cities, reflecting a mix of stable demand and shifting local dynamics. The growth trajectory in this region is indicative of broader trends in urban development and population migration towards tier 2 cities, further fueled by government initiatives aimed at enhancing infrastructure and housing availability.
Southern India’s Performance: Coimbatore Shines Bright
In southern India, the housing market displayed a marginal increase in sales, with a total of 10,941 units sold in 2024, compared to 10,648 in 2023, marking an uptick of 2.75 percent. The sales value also grew by 15 percent, amounting to Rs 11,404 crore. Leading the charge was Coimbatore, which recorded a remarkable 36 percent increase in sales, followed by Trivandrum with a commendable 16 percent rise. However, Visakhapatnam faced challenges, witnessing a significant 21 percent decline in sales, which also translated to a 1 percent drop in sales value. These contrasting performances within the southern cities highlight the uneven recovery post-pandemic, influenced by various local factors such as job creation, economic development, and the attractiveness of urban infrastructure. The surge in Coimbatore’s housing sales may be attributed to its growing reputation as a commercial hub, attracting investments and new residents. This regional analysis underscores the need for targeted policies and investment strategies to foster balanced growth across all southern cities while addressing the challenges faced by those experiencing downturns.
Northern and Eastern India: Varied Sales Trends
Turning to northern India, housing sales stood at 18,889 units in 2024, marking a 2.5 percent increase from the previous year’s 18,420 units. The total sales value in this region saw a significant growth of 23 percent, reaching Rs 19,127 crore. Jaipur led in sales growth with a 5 percent rise, while Lucknow experienced a modest increase of 1 percent. However, Mohali faced a slight decline of 1 percent in sales. Notably, sales value growth also varied, with Jaipur reporting a remarkable 39 percent increase, Lucknow at 5 percent, and Mohali at 18 percent. In contrast, the two eastern and central cities recorded substantial gains, with sales increasing by 18 percent to 10,387 units in 2024, compared to 8,804 units in 2023. Sales value in this region surged by 45 percent, amounting to Rs 11,082 crore, driven by impressive growth in Bhubaneswar and Bhopal. Such varied sales trends across different regions underline the importance of localized strategies to stimulate housing demand and address the unique challenges each market faces, ensuring sustained growth in India’s real estate sector.
