Housing sales in top 30 Tier II Cities rise 11% in last fiscal

Mumbai: Housing sales across top 30 Tier II cities increased 11 per cent annually to nearly 2.08 lakh units during the last fiscal year on high consumer demand driven by robust economic growth, infrastructure development and growing desire for home ownership, according to data analytics firm PropEquity.

The study revealed that the growth in demand for residential properties is not restricted to top seven major cities.

Talking to Bizz Buzz, Angad Bedi, Managing Director, BCD Group says, “PropEquity's report brings positive news for India’s housing market. The report sheds light on the impressive performance of the residential sector in Tier II cities, which outperformed Tier 1 cities with an 11 per cent surge in sales during FY2024.”

Competitive property prices, and growing aspirations among middle-class homebuyers for upscale living are driving the growth momentum in these up-and-coming cities. Furthermore, infrastructure development and economic boom in these cities are creating a vibrant environment that is attracting both residents and investors, he said.

Anil Gupta, President Credai NCR Bhiwadi Neemrana says, “The rise of Tier II cities reflects a clear shift in the housing market. Bhiwadi, strategically located near the National Capital Region (NCR), is a prime example.”

With its ability to offer spacious and premium housing at competitive prices compared to NCR counterparts, Bhiwadi is poised to become the new Sohna. Much like Sohna's success story, Bhiwadi is well-positioned to attract homebuyers seeking quality living spaces without the exorbitant price tags of established metro areas, he said.

This trend highlights the growing potential of Tier II cities to cater to the evolving needs of the Indian residential market.

As per the data, the sales of housing units in India’s 30 major tier II cities stood at 2,07,896 units in 2023-24 as against 1,86,951 units in the preceding financial year.

Interestingly, the data showed that out of these 30 cities, the top 10 cities contributed 80 per cent to the total sales.

West zone accounted for nearly 70 per cent to the total sales in 30 tier II cities. Major Cities falling in the state of Gujarat saw huge demand.

Commenting on the data, Samir Jasuja, Founder Managing Director of PropEquity said, “Tier II cities performed better than Tier I cities due to lower property prices and growth potential. On the other hand, Affordability makes the dream of owning a home a reality for a growing middle class. Furthermore, these cities are also experiencing economic booms due to setting up of small and medium enterprises (SME) businesses and industries. Government push on infrastructure creation is another major reason for rising demand in Tier II cities.