In the first quarter of 2025, most Tier-II cities in India saw a slowdown in home sales. According to a report by PropEquity, a real estate data analytics platform, around 43,781 units were sold — a drop of 8 per cent compared to the same time last year. However, the total money spent on these homes increased slightly by 6 per cent, reaching over Rs. 40,000 crore. This shows that while fewer homes were sold, people were buying more expensive properties.
Lucknow’s Property Market Grows Strong
Lucknow stood out from the rest. The city saw a 25 per cent rise in the number of homes sold, with 1,301 units sold in just three months. Even more impressive, the total value of these sales jumped by 48 per cent , touching Rs. 1,797 crore. This shows growing interest in better-quality homes, likely due to improved roads, services, and job opportunities in the city.
Some Cities Perform Better Than Others
State capitals like Jaipur, Gandhinagar, Bhubaneswar, Goa, and Bhopal showed mixed results. They made up one-fourth of the total home sales in Tier-II cities and nearly one-third of the total value. Although sales dropped by 5 per cent , the money spent on homes in these cities went up by 17 per cent, showing people are choosing costlier homes.
Region-Wise Trends
• Western cities like Ahmedabad and Surat sold fewer homes but earned more from sales.
• Northern cities like Jaipur and Mohali saw fewer units sold but a strong jump in total value.
• Southern cities like Kochi and Coimbatore saw a drop in both number of homes sold and value.
• Central and Eastern cities like Bhopal and Bhubaneswar had fewer sales, with no big change in value.
Output
The overall drop in home sales is partly because fewer new homes were launched during this time. Still, demand for homes remains strong in many places. As interest rates come down and cities grow, experts expect home sales to bounce back soon — especially in cities that are developing quickly and offering better lifestyles. Lucknow’s performance this quarter shows just how much of a difference local growth can make.
