Housing Sales In Top 15 Tier 2 Cities See 4 Per Cent Growth In 2024: Report

In 2024, the housing market in India’s top 15 tier 2 cities saw a 4 per cent increase in sales, reaching a total of 1.78 lakh units. The total sales value grew by 20 per cent, amounting to Rs 1.52 lakh crore, as per the data shared by PropEquity, an NSE-listed real estate data analytics company, on February 12. The increase in sales value highlights rising home prices, driven by higher raw material costs and speculative investments.

The report revealed that total housing sales increased from 1.71 lakh units in 2023 to 1.78 lakh units in 2024, while the sales value rose significantly from Rs 1.27 lakh crore in 2023 to Rs 1.52 lakh crore in 2024.

Among the cities, Coimbatore recorded the sharpest increase in housing sales at 36 per cent, while Visakhapatnam witnessed the steepest decline, falling by 21 per cent. In terms of sales value, Bhubaneswar led with a 47 per cent rise, whereas Nashik was the only city to register a decline of 2 per cent. Ahmedabad topped the list in terms of sales value among the 15 cities, with homes worth Rs 49,421 crore sold in 2024, a 17 per cent increase from Rs 42,063 crore in 2023.

Samir Jasuja, Founder and CEO of PropEquity, stated, “The Budget announcements are expected to drive housing demand in tier 2 cities and foster employment opportunities. This includes proposals for the development of airports, promotion of GCCs, tourism, relaxation on second homes, and, notably, tax exemption on income up to Rs 12 lakhs. The ongoing focus on infrastructure development, such as metro rail, highways, and expressways, will further support growth across all real estate segments.”

Jasuja further commented, “Despite a 4 per cent increase in sales, the 20 per cent rise in sales value in 2024 indicates a rapid surge in home prices in these cities. Factors such as rising raw material costs and speculative investments may influence the real estate market."

According to reports, In terms of regional performance, Western India saw a 3.4 per cent rise in housing sales, with sales value increasing by 18 per cent. Also, in Southern India, sales across three cities grew by 2.75 per cent, while sales value saw a 15 per cent increase. Northern India recorded a 2.5 per cent rise in sales across cities such as Jaipur and Mohali, with sales value growing by 23 per cent. Eastern and Central India experienced an 18 per cent growth in sales, with a substantial 45 per cent jump in sales value.