Housing sales in top 15 tier-II cities dip 10%, launches fall 6%: Report
Sales volumes in top 15 Tier II cities fall 10% to 1.56 lakh units in 2025, while value stays flat at Rs 1.48 trillion as premium housing gains share, says PropEquity
 "Housing sales in top 15 tier-II cities dip 10%, launches fall 6%: Report")
With housing sales value remaining flat at Rs 1.48 trillion across the top 15 Tier II cities in 2025, sales volumes declined 10 per cent year-on-year (Y-o-Y) to 1,56,181 units, reflecting rising housing prices and increasing premiumisation, according to a report by PropEquity.
According to the real estate data analytics firm, the growing shift towards high-ticket housing is evident in the numbers. Homes priced below Rs 1 crore recorded a 15 per cent Y-o-Y decline in volumes in 2025, with their share falling to 72 per cent from 77 per cent in 2024. In contrast, homes priced above Rs 1 crore saw a 9 per cent increase in sales, with their share rising to 28 per cent from 23 per cent during the same period.
Samir Jasuja, founder and chief executive officer of PropEquity, said, “The slowdown in housing sales over the past two years is largely due to a shrinking supply of homes priced below Rs 1 crore — a segment that has traditionally driven demand in Tier II cities. Rising land and construction costs, along with changing buyer aspirations, are pushing new launches into higher price brackets. As a result, Tier II markets are increasingly mirroring Tier I cities, where volumes are declining even as prices continue to rise.”
Except for Mohali and Lucknow, which saw growth in sales volume of 34 per cent and 6 per cent Y-o-Y, respectively, the other 13 cities recorded declines of up to 38 per cent, with Visakhapatnam witnessing the sharpest fall.
Looking ahead, PropEquity noted that Ahmedabad can be regarded as a Tier I city, having outpaced several established Tier I markets in both housing launches and absorption. Given the scale of development and the depth of demand it now commands, the city earns its place among India’s leading urban markets.
Jasuja added, “Government focus on Tier II cities through enhanced urban development, improved connectivity, and the creation of industrial corridors and manufacturing hubs has driven sustained price appreciation. This has pushed even average housing units in many Tier II markets beyond the Rs 1 crore mark, leading to slower absorption.”
Going forward, PropEquity said this trend could become a concern as affordability pressures begin to impact not just premium segments but also affordable and mid-income housing in these cities.
New housing supply across the top 15 Tier II cities fell 6 per cent to 1,36,243 units in 2025, compared with 1,45,139 units in 2024. The slowdown was visible across price brackets — launches of homes priced below Rs 1 crore declined 5 per cent, while those above Rs 1 crore dropped 8 per cent.
Only four cities — Mohali (up 108 per cent), Bhopal (66 per cent), Ahmedabad (3 per cent) and Jaipur (2 per cent) — recorded growth in new launches. The remaining 11 cities saw declines of as much as 57 per cent, with Bhubaneswar registering the sharpest fall. Notably, the four Gujarat cities together accounted for 64 per cent of total launches in 2025.
| Total Absorption (No. of units) | |||
| Location | 2024 | 2025 | % Change |
| Ahmedabad | 55315 | 51148 | -8% |
| Surat | 23342 | 19835 | -15% |
| Vadodara | 17045 | 13798 | -19% |
| Gandhi Nagar | 13884 | 13710 | -1% |
| Nashik | 12492 | 11188 | -10% |
| Jaipur | 10271 | 9758 | -5% |
| Nagpur | 7653 | 6260 | -18% |
| Mohali | 4554 | 6118 | 34% |
| Bhubaneshwar | 6538 | 4885 | -25% |
| Lucknow | 3812 | 4053 | 6% |
| Coimbatore | 3854 | 3702 | -4% |
| Bhopal | 3804 | 3599 | -5% |
| Goa | 3518 | 3507 | 0% |
| Visakhapatnam | 3858 | 2406 | -38% |
| Kochi | 2659 | 2214 | -17% |
| Top 15 tier 2 cities | 172599 | 156181 | -10% |
Source: PropEquity
Source: PropEquity
| New Supply (No. of units) | |||
| Location | 2024 | 2025 | % Change |
| Ahmedabad | 47344 | 48646 | 3% |
| Surat | 19905 | 17256 | -13% |
| Gandhi Nagar | 14712 | 12829 | -13% |
| Jaipur | 8665 | 8803 | 2% |
| Mohali | 4128 | 8606 | 108% |
| Vadodara | 11104 | 8367 | -25% |
| Nashik | 8540 | 8222 | -4% |
| Nagpur | 6121 | 5485 | -10% |
| Bhopal | 1999 | 3312 | 66% |
| Coimbatore | 3681 | 3251 | -12% |
| Lucknow | 5076 | 2884 | -43% |
| Bhubaneshwar | 6674 | 2840 | -57% |
| Goa | 2799 | 2749 | -2% |
| Visakhapatnam | 2455 | 1155 | -53% |
| Kochi | 1936 | 1838 | -5% |
| Top 15 tier 2 cities | 145139 | 136243 | -6% |