real estate
According to the latest report by real estate data analytics platform PropEquity, home sales in 15 major tier-2 cities of the country declined by 10% to 1,56,181 units during 2025. However, the total sales value remained almost stable and remained around Rs 1.48 lakh crore.
According to Sameer Jasuja, Founder and CEO of PropEquity, the main reason for the slowdown in sales in the last two years is the reduced supply of houses priced below Rs 1 crore. This segment generally generated the highest demand in tier-2 cities.
Cheap houses less, premium segment strong
Due to increasing land and construction costs, new projects are now being launched at higher prices. The report shows that there has been an increase of 9% in the sales of houses priced above Rs 1 crore. The share of this segment was 23% in 2024, which increased to 28% in 2025. Sameer Jasuja says that now the Tier-2 market is gradually becoming like Tier-1 cities, where the number of sales decreases but the prices keep increasing.
How much decline in which cities?
A decline in sales was recorded in cities like Ahmedabad, Surat, Vadodara, Nashik, Jaipur, Nagpur, Bhubaneswar, Coimbatore, Bhopal, Goa, Visakhapatnam and Kochi. The maximum decline was 38% in Visakhapatnam. An increase of 34% was recorded in Mohali and 6% in Lucknow.
expert opinion
Real estate experts say that demand for premium and lifestyle-based homes is now increasing in tier-2 cities, especially in the range of Rs 12 crore. Due to better infrastructure, connectivity and employment opportunities, the interest of investors and buyers in these cities is increasing. Overall, sales in the tier-2 real estate market have declined due to a shortage of affordable homes, but demand for expensive and premium homes remains strong.
