Tier II Cities: The New Frontier in India's Real Estate Boom
Housing demand in 15 major tier II cities faced an 8% decline in sales in the early months of 2025, while sales value rose by 6%. Factors such as infrastructure advancements, corporate expansion, and potential home loan rate cuts may propel future housing demand and market growth in these areas.
- Country:
- India
Housing demand in major tier II cities across India has seen a slowdown, with sales declining by 8% in the first quarter of 2025, according to PropEquity's report. Despite the dip in volume, sales value saw an uplift of 6% to Rs 40,443 crore, highlighting an intriguing trend in the real estate landscape.
PropEquity CEO Samir Jasuja attributed the lower sales to a reduced supply in the March quarter, although he remained optimistic about future demand. Factors such as improved social infrastructure and anticipated reductions in home loan interest rates could sustain and potentially increase housing demand in the coming quarters.
Meanwhile, select cities like Lucknow and Coimbatore showed significant growth in units sold, while others like Visakhapatnam faced declines. As infrastructure and corporate expansion continue in these cities, industry leaders predict a promising future for these upcoming real estate markets.
(With inputs from agencies.)
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