House sales in tier-II cities sales dip 8%, but value rises 6% in Q1 2025: PropEquity report

NEW DELHI: Housing sales in India’s tier-II cities witnessed a blended efficiency through the January-March quarter of 2025, with a decline in quantity but a rise in value, in accordance with information from actual property consultancy PropEquity, as reported by PTI.A complete of 43,781 housing items have been bought throughout 15 tier-II cities in Q1 2025, marking an 8 per cent drop from 47,378 items in the corresponding interval final 12 months. However, the general transaction value rose 6 per cent to Rs 40,443 crore, up from Rs 38,102 crore a 12 months in the past.The evaluation coated cities together with Ahmedabad, Surat, Vadodara, Gandhinagar, Nashik, Nagpur, Goa, Lucknow, Jaipur, Mohali, Visakhapatnam, Kochi, Coimbatore, Bhopal, and Bhubaneswar.Explaining the contrasting tendencies, PropEquity Founder and CEO Samir Jasuja stated, “The lesser supply in March quarter resulted in lower sales in tier 2 cities. State capitals performed relatively better.” He added that demand continues to be supported by enhancements in infrastructure.Jasuja additionally pointed to financial coverage as a possible driver for future development. “RBI has made 50 basis points cut in repo rate since January 2025 and is expected to cut rates further. As this gets transmitted by banks, home loans will decline going forward thereby giving a boost to housing demand,” he stated.Among the cities, Lucknow led with a 25 per cent year-on-year enhance in items bought at 1,301, adopted by Coimbatore (21 per cent), Gandhinagar (18 per cent), and Mohali (2 per cent). In distinction, 11 cities noticed a fall in sales, with Visakhapatnam registering the steepest decline at 37 per cent.Ahmedabad, the biggest among the many surveyed markets, noticed a marginal 1 per cent dip in sales quantity to 14,583 items. However, the overall value of transactions in the town rose 7 per cent to Rs 13,565 crore, in comparison with Rs 12,730 crore in the identical quarter final 12 months.NeoLiv Founder and CEO Mohit Malhotra stated tier-II cities are more and more changing into outstanding housing markets. “Tier-II cities are rapidly emerging as prominent housing markets, driven by expanding corporate presence, employment opportunities, and aggressive infrastructure development. These cities are witnessing a transformation fuelled by strategic public and private investments. This has led to a surge in demand and property prices across various micro-markets,” he stated.Royal Green Realty Managing Director Yashank Wason additionally famous the rising attraction of rising markets. “As metropolitan regions face saturation, these cities offer a compelling blend of opportunity and lifestyle, positioning them at the forefront of India’s next real estate growth wave,” he stated, naming Indore, Sonipat, and Rohtak amongst these benefiting from speedy infrastructure improvement.VS Realtors Founder Vijay Harsh Jha expressed optimism about the way forward for tier-II housing markets. He stated the present decline in sales is short-term and anticipated sturdy financial development, together with decrease residence mortgage charges, will revive demand.