Tier-II City Housing Boom: Sales Surge Amidst Rising Prices

Housing sales in 15 tier-II cities surged by 20% in value terms last year, reaching over Rs 1.52 lakh crore. While sales volume increased by 4%, price appreciation drove much of the growth. Cities like Coimbatore and Bhubaneswar saw significant increases, highlighting a shift in housing demand towards tier-II urban areas.

Housing sales in 15 prominent tier-II cities have surged by 20% in value terms, surpassing Rs 1.52 lakh crore last year, according to data from real estate analytics firm PropEquity.

Released on Wednesday, the data highlighted a 4% increase in sales volume, recording 1,78,771 units sold in 2024 compared to 1,71,903 units in the previous year.

Real estate experts attribute this trend to rising home prices, driven by factors such as increased raw material costs and speculative investments, as well as budgetary boosts to housing demand in these cities.

(With inputs from agencies.)