Sustained Demand in Tier II Cities Boosts Housing Sales Value Despite Volume Dip

Despite a 4% decline in housing sales volumes in 15 major Tier II cities, sales value increased by 4% to Rs 37,409 crore in the July-September quarter. PropEquity data indicates robust demand due to economic growth and improved infrastructure, driving stronger sales in cities such as Ahmedabad and Surat.

Housing sales in key Tier II cities across India have shown an impressive performance. According to PropEquity data, although sales volumes dipped by 4% to 39,201 units in the September quarter, the sales value rose by 4% annually, reaching Rs 37,409 crore. This highlights a shift in consumer preference towards quality and trusted brands.

Tier II cities, including Ahmedabad, Surat, and Vadodara, continue to underpin India's real estate sector. PropEquity Founder and CEO Samir Jasuja states that these cities play a crucial role in India's growth, driven by improved infrastructure and expanding job markets. The Gujarat cities alone contribute over 60% to both launches and sales, driven by their manufacturing prowess and rising white-collar employment.

Industry leaders assert the enduring demand in Tier II cities. While new housing launches declined by 10% year-on-year to 28,721 units, this is viewed as a strategic pause rather than a downturn. Real estate leaders, such as Kirthi Chilukuri of Stonecraft Group, emphasize a maturing market with buyers prioritizing long-term value and quality over mere volume.

(With inputs from agencies.)