New Delhi: The increase in housing demand is not limited to big cities, with residential property sales increasing by 11 percent in 30 Tier II towns to almost 2.08 lakh units last fiscal, as reported by PropEquity. The housing market in Tier II cities was the focus of a report released by real estate data analytic firm PropEquity on Friday.
The data indicated a rise of 11 percent in housing sales, with 2,07,896 units sold in 2023-24 compared to 1,86,951 units in the previous fiscal year. 80 per cent of total sales in 30 small towns came from the top 10 Tier II cities including Ahmedabad, Vadodara, Surat, Nashik, Gandhi Nagar, Jaipur, Nagpur, Bhubaneshwar, Visakhapatnam, and Mohali.
In the year 2023-24, the combined sales of residential units in these 10 cities increased by 11 percentage to 1,68,998 from 1,51,706 homes sold in 2022-23. Bhopal, Lucknow, Goa, Coimbatore, Raipur, Vijayawada, Indore, Kochi, Trivandrum, Mangalore, Guntur, Bhiwadi, Dehradun, Ludhiana, Chandigarh, Agra, Mysore, Sonepat, Panipat and Amritsar are the remaining 20 Tier II cities.
Samir Jasuja, PropEquity's Founder and Managing Director, stated that Tier II cities outperformed Tier I cities because of their lower property prices and potential for growth. He added that affordability in these smaller cities is making the dream of home ownership a reality for an expanding middle class.
"These cities are also undergoing economic growth as a result of the establishment of small and medium enterprises (SMEs) and industries." According to Jasuja, the increase in demand in Tier II cities is also attributed to the government's focus on building infrastructure.
According to data from PropEquity, a company listed on stock exchanges, around 70 percent of total sales in 30 Tier II cities came from the West zone. Big cities in Gujarat experienced a significant increase in demand. Housing sales in the western zone saw an increase of 11 percent in 2023-24 with sales of 1,44,269 residential units, up from 1,29,423 units.
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