Housing prices appreciate up to 65% in Tier II cities since 2023: PropEquity report
Dec 07, 2024
New Delhi [India], December 7 : Real estate projects in top tier II cities rose upwards of 65 per cent on an average since 2023, according to online real estate data and analytics platform PropEquity.
In break up, 25 cities among top 30 tier II cities witnessed a rise in prices while 5 cities saw a decline in newly launched housing projects, according to the report by NSE-listed firm.
Cities like Bhopal, Mohali, Sonepat, Trivandrum, and Mysore saw housing price fall by up to 26 per cent, according to the report.
Samir Jasuja, Founder and CEO, PropEquity said, tier II cities have seen renewed interest from developers, corporates, financial institutions.
"The cheap availability of land in these cities followed by massive development of connectivity infrastructure and strong demand have led to increased supply of premium and luxury housing from not just incumbent developers but new entrants cashing in on the potential of these cities as growth centres and employment hubs driving the next phase of India growth story," said Jasuja.
Cities like Jaipur, Guntur, Gandhi Nagar, and Bhubaneshwar have seen price rise between 15-65 per cent in the last one year.
In the northern part of India, Jaipur saw the highest rise in weighted average price of new launch projects at 65 per cent from Rs 4240 per sq. ft. to Rs 6979 per sq. ft. since 2023.
This was followed by Indore (20 per cent) and Dehradun (14 per cent). Sonepat at 26 per cent witnessed the highest fall in price followed by Mohali (8 per cent) and Bhopal (5 per cent).
While Agra, Chandigarh and Bhiwadi saw 59 per cent, 34 per cent and 25 per cent growth in prices respectively.
In the southern part of India, Guntur saw average rise in prices by 51 per cent to Rs 5169 per sq. ft. followed by Mangalore (41 per cent), Visakhapatnam (29 per cent). Mysore and Trivandrum witnessed fall in prices at 14 per cent and 4 per cent, respectively.
In the western part of India, Gandhinagar saw 19 per cent rise to Rs 4844 per sq. ft., followed by Surat (14 per cent) and Nagpur (12 per cent).
In eastern India, Bhubaneshwar saw 15 per cent rise to Rs 7731 per sq. ft. and Raipur by 14 per cent to Rs 3810 per sq. ft.
Notably, as per the PropEquity report, Goa is the only city amongst 30 tier II cities that has seen weighted average launch price cross the Rs 10,000 per sq. ft. threshold.
Top 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.
