Tier II cities witness housing price surge of up to 65% in just one year
Cities like Jaipur, Guntur, Gandhi Nagar and Bhubaneshwar have seen housing price surge between 15% and 65% in the last one year
Cities such as Bhopal, Mohali, Sonepat, Trivandrum, and Mysore experienced a decrease in housing prices of up to 26%, according to the findings. (Image: Freepik)
The weighted price of newly-launched projects in the top 30 Tier II cities increased by up to 65% from 2023 to October 2024, as reported by the data analytics firm PropEquity. During this period, 25 cities experienced price increases, while 5 cities reported a decline.
Cities such as Bhopal, Mohali, Sonepat, Trivandrum, and Mysore experienced a decrease in housing prices of up to 26%, according to the findings.
In response to the report, Samir Jasuja, Founder and CEO of PropEquity, stated, “There has been a resurgence of interest in Tier II cities from developers, corporations, financial institutions, and the investment community. The availability of affordable land in these areas, coupled with significant improvements in connectivity infrastructure and robust demand, has resulted in an increased supply of premium and luxury housing. This trend is not only driven by established developers but also by new entrants who recognize the potential of these cities as growth centers and employment hubs, contributing to the next phase of India’s growth narrative. Cities like Jaipur, Guntur, Gandhi Nagar, and Bhubaneshwar have witnessed price increases ranging from 15% to 65% over the past year.”
In North India, Jaipur saw the highest rise in weighted average price of new launch projects at 65% from Rs 4240 per sq. ft. to Rs 6979 per sq. ft. between 2023-October 2024. This was followed by Indore (20%) and Dehradun (14%). Sonepat at 26% witnessed the highest fall in price followed by Mohali (8%) and Bhopal (5%).
While Agra, Chandigarh and Bhiwadi saw 59%, 34% and 25% growth in prices respectively, the new launches in these cities were very few (between 3-5 projects) during this period.
In Southern India, Guntur saw weighted average price of new launch projects rise by 51% to Rs 5169 per sq. ft. between 2023 and October 2024 followed by Mangalore (41%), Visakhapatnam (29%). Mysore and Trivandrum witnessed fall in prices at 14% and 4%, respectively.
In Western India, Gandhi Nagar saw weighted average price of new launch projects rise by 19% to Rs 4844 per sq. ft. between 2023 and October 2024, followed by Surat (14%) and Nagpur (12%).
In Eastern India, Bhubaneshwar saw weighted average price of new launch projects rise by 15% to Rs 7731 per sq. ft. between 2023 and October 2024 and Raipur by 14% to Rs 3810 per sq. ft.
Goa is the only city amongst 30 tier II cities that has seen weighted average launch price cross the Rs 10,000 per sq. ft. threshold.
Prices in cities like Vijayawada, Gandhi Nagar, Surat, Vadodara, Ahmedabad and Raipur continue to stay below the Rs 5000 per sq. ft. Mark.
