A 10 percent decline in residential sales volume was recorded in 15 major tier-2 cities of the country in 2025, which came down to 1,56,181 units. However, the total value of sales remained stable at Rs 1.48 lakh crore, the same as last year. This information has come to light in a recent report by real estate data analytics firm PropEquity. According to the report, housing sales value in these top-15 tier-2 cities remained unchanged at ₹1.48 lakh crore in 2025, but the number of units declined by 10% year-on-year.
Main reason for slowness in sales
According to the news, Sameer Jasuja, founder and CEO of PropEquity, said that the main reason for the slowdown in sales in the last two years is the lack of supply of houses priced below ₹ 1 crore. This segment has long been a key driver of demand in tier-II cities. He said due to rising land and construction costs and changing preferences of buyers, new projects are now being launched mostly in the higher price brackets. As a result, tier-2 markets are beginning to behave like tier-1 cities, where sales volumes are declining but average prices continue to rise. The report mentions that sales of premium homes priced above ₹1 crore grew by 9 per cent, taking their market share from 23% in 2024 to 28% in 2025.
Key city-wise sales figures (2025 vs 2024):
- Ahmedabad: 51,148 units (down 8%, previously 55,315)
- Appearance: 19,835 units (15% decline, previously 23,342)
- Vadodara: 13,798 units (down 19%, previously 17,045)
- Gandhinagar: 13,710 units (subtraction, previously 13,884)
- Nashik: 11,188 units (down 10%, previously 12,492)
- Jaipur: 9,758 units (down 5%, previously 10,271)
- Nagpur: 6,260 units (18% decline, previously 7,653)
- Mohali: 6,118 units (34% increase, previously 4,554)
- Bhubaneswar: 4,885 units (25% decline, previously 6,538)
- Lucknow: 4,053 units (up 6%, up from 3,812)
- Coimbatore: 3,702 units (down 4%, previously 3,854)
- Bhopal: 3,599 units (down 5%, previously 3,804)
- Goa: 3,507 units (slight decline, previously 3,518)
- Visakhapatnam: 2,406 units (a big decline of 38%, previously 3,858)
- Kochi: 2,214 units (down 17%, previously 2,659)
Gujarat cities (Ahmedabad, Surat, Vadodara, Gandhinagar) remained dominant with 63% share in total sales, although these also saw a decline.
What is the opinion of experts
Hero Realty CEO Rohit Kishore said demand in the ₹1-2 crore premium segment in tier-II cities is growing steady and healthy. Manish Agarwal, President, CREDAI Haryana and MD, Satya Group, emphasized the growing interest from end-users and investors due to infrastructure, connectivity and employment opportunities. Arise Group MD Aman Sharma said that buyers are now giving priority to better lifestyle, bigger houses and integrated communities instead of affordable houses.
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