Tier 2 cities outpace metros in residential plot launches: PropEquity

Seven of the top 10 cities for residential plot launches were tier 2 locations, led by Indore, Nagpur and Surat, as investor interest shifts away from apartments

Tier 2 cities such as Indore, Nagpur and Surat have outpaced big cities as realtors launched nearly 470,000 residential plots, with an estimated launch value of approximately Rs 2.44 trillion, across the top 10 tier 1 and tier 2 cities between 2022 and May 2025, according to a report by real estate analytics firm PropEquity.

 

The report stated that seven of the top 10 cities were tier 2, supplying around 243,000 residential plots and accounting for 52 per cent of the total supply. These cities include Indore, Nagpur, Jaipur, Coimbatore, Mysore, Raipur and Surat.

 

On the other hand, only three tier 1 cities — Hyderabad, Bengaluru and Chennai — made it to the top 10, supplying nearly 225,000 residential plots or 48 per cent of the supply share.

 

Commenting on the trend, PropEquity founder and chief executive officer Samir Jasuja said that with demand for apartments, floors and villas showing signs of weakness in the first half of 2025, a shift in investment towards plots is highly likely. 

 

“Residential plots have emerged as a safe haven for investors looking at them for self-use or investment post-pandemic owing to their liquidity, faster appreciation and desire to customise their living space,” he added.

 

For developers, Jasuja said plots generate quicker cash flow as they involve faster sales and lower upfront investment compared to apartments.

 

The report further highlighted that in the first five months of 2025, developers launched 45,591 residential plots — 36 per cent of the supply seen in 2024 and 28 per cent of the supply in 2023.

 

In 2024, the supply of residential plots in the top 10 tier 1 and tier 2 cities fell 23 per cent year-on-year (YoY) to 126,556 plots from 163,529 plots in 2023. The weighted average launch price of residential plots in these cities rose 27 per cent YoY in 2024 to Rs 3,679 per square foot.