Residential Property Sales Surge 11% In Tier II Cities, Reaching 2.08 Lakh Units In FY24: Report

The report revealed that the Western zone accounted for nearly 70 per cent of total sales across 30 Tier II cities. Cities in Gujarat particularly experienced significant demand.

Housing transactions in the Western zone reached 144,269 units in 2023-24, an 11 per cent increase from 129,423 homes in 2022-23

Source : Other

The increase in housing demand extends beyond major urban centres. According to a report from PropEquity, residential property sales in 30 Tier II towns rose by 11 per cent to nearly 2.08 lakh units in the last fiscal year. The data in the report indicated a significant uptick in housing sales, reaching 2,07,896 units in 2023-24 compared to 1,86,951 units in the previous financial year.

Among these Tier II cities, the top 10, including Ahmedabad, Vadodara, Surat, Nashik, Gandhi Nagar, Jaipur, Nagpur, Bhubaneshwar, Visakhapatnam, and Mohali, accounted for 80 per cent of the total sales. Collectively, these cities recorded sales of 1,68,998 residential units in 2023-24, marking an 11 per cent increase from 1,51,706 units in 2022-23, states the report.

The remaining 20 Tier II cities include Bhopal, Lucknow, Goa, Coimbatore, Raipur, Vijayawada, Indore, Kochi, Trivandrum, Mangalore, Guntur, Bhiwadi, Dehradun, Ludhiana, Chandigarh, Agra, Mysore, Sonepat, Panipat, and Amritsar.

Sharing his take on the report’s findings, Samir Jasuja, Founder and Managing Director at PropEquity, said, "Tier II cities performed better than Tier I cities due to lower property prices and growth potential." 

He further noted that affordability is making the dream of homeownership a reality for an expanding middle class in these smaller cities. "These cities are also experiencing economic booms due to the setting up of small and medium enterprises (SME) businesses and industries. Government push on infrastructure creation is another major reason for rising demand in Tier II cities," Jasuja said.

The report revealed that the Western zone accounted for nearly 70 per cent of total sales across 30 Tier II cities. Cities in Gujarat particularly experienced significant demand. Housing transactions in the Western zone reached 144,269 units in 2023-24, an 11 per cent increase from 129,423 homes in 2022-23. 

Meanwhile, the Northern zone saw an 8 per cent rise in residential property sales to 26,308 units from 24,273 homes in the previous fiscal year. In the Southern zone, sales reached 21,947 units in 2023-24, up 8 per cent from 20,244 homes the year before. The Eastern and Central zones combined experienced an 18 per cent growth in housing sales, reaching 15,372 units in 2023-24 from 13,011 units in 2022-23.