Residential property launch prices across India’s top 10 Tier II cities have witnessed a rise up to 94% in new launch projects in the last five fiscal years ending 2023-24 due to growing consumer confidence, a buoyant job market and robust infrastructure development, according to data analytics firm PropEquity.
PropEquity reported a double-digit surge in launch prices in 24 out of 30 Tier II cities in the last 5 fiscal years. However, the remaining six recorded a single digit price appreciation.
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Interestingly, the data showed that out of these 30 cities, the top 10 cities witnessed an increase in residential property launch prices ranging from 54% to 94% (since FY2020 to FY2024), with Agra in the North Zone accounting for the highest rise of 94%.
Goa (90%), Mangalore (56%) and Indore (72%) reported the highest surge in the West, South and Central/East Zones respectively.
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“Tier II cities have witnessed a significant price appreciation primarily due to increased demand, as absorption has been significantly higher than new launches in the last five fiscal years. The rise in consumer confidence fueled by economic growth, a boost in connectivity, infrastructure development and strong job markets has driven up prices in double digits in the majority of these cities,” said Samir Jasuja, Founder and CEO at PropEquity.
Tier 2 cities offer a lower cost of living, making them attractive for homebuyers seeking value. This affordability fuels demand for residential properties, compared to Tier 1 cities. In addition, enhanced connectivity brings amenities like educational institutions and healthcare facilities closer, making tier 2 cities more attractive for families and young professionals.
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PropEquity captures real estate data for RERA approved projects in 44 Indian cities including 14 Tier I cities and 30 Tier II Cities.
30 Tier II cities include – Amritsar, Mohali, Ludhiana, Chandigarh, Panipat, Dehradun, Bhiwadi, Sonepat, Jaipur, Agra, Lucknow, Bhopal, Indore, Visakhapatnam, Vijayawada, Guntur, Goa, Mangalore, Mysore, Coimbatore, Kochi, Trivandrum, Raipur, Bhubaneshwar, Ahmedabad, Gandhi Nagar, Vadodara, Surat, Nashik and Nagpur.
