Housing sales in India’s top 15 tier 2 cities dropped by 8% year-on-year in the first quarter of 2025, according to a report by real estate data analytics firm PropEquity. A total of 43,781 units were sold in Q1 2025 compared to 47,378 units in Q1 2024. However, despite the dip in volume, sales value rose by 6%, touching Rs 40,443 crore, up from Rs 38,102 crore a year earlier.
Lucknow leads in sales growth, Visakhapatnam sees sharpest decline
Among the 15 cities, Lucknow recorded the highest growth in housing sales at 25%, with 1,301 units sold in Q1 2025. Coimbatore followed closely with a 21% rise, while Gandhi Nagar and Mohali registered 18% and 2% increases, respectively.
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On the flip side, Visakhapatnam saw the steepest fall, with a 37% decline in unit sales. Bhopal and Jaipur followed with 31% and 32% drops, respectively. Cities like Ahmedabad and Goa recorded minimal declines of 1%.
Sales value rises despite dip in volumes
Interestingly, even as the number of units sold declined, the sales value surged, suggesting a rise in property prices or a shift toward premium housing. Coimbatore led the value chart with a 52% increase, reaching Rs 1,120 crore in Q1 2025. Lucknow posted a 48% growth, followed by Gandhi Nagar (36%), Mohali and Goa (17% each), and Ahmedabad and Bhubaneshwar (7% each).
Meanwhile, Visakhapatnam again saw the highest dip in value at 35%, with Bhopal (24%) and Jaipur (10%) trailing. Vadodara and Nagpur saw marginal declines of just 1% each.
State capitals show resilience
The six state capitals in the report—Gandhi Nagar, Jaipur, Bhubaneshwar, Lucknow, Goa, and Bhopal—saw a 5% drop in unit sales but a significant 17% increase in sales value. These cities together accounted for 25% of total units sold and 30% of the total sales value in Q1 2025, underscoring their importance in the tier 2 market.
Northern cities show promise
Regionally, Western India (Ahmedabad, Surat, Vadodara, Gandhi Nagar, Nashik, Nagpur, Goa) reported a 6% decline in sales volume but a 6% rise in value. Northern India (Lucknow, Jaipur, Mohali) saw a 14% drop in sales but a 14% increase in value, indicating strength in pricing or buyer preference for premium segments.
Southern India (Visakhapatnam,
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