Forget Delhi and Mumbai, Tier II cities are the rage now, with home sales up 4%
These 15 Tier II cities include Ahmedabad, Surat, Gandhinagar, Vadodara, Jaipur, Nashik, Nagpur, Mohali, Bhubaneswar, Lucknow, Bhopal, Coimbatore, Goa, Trivandrum and Kochi. New supply declined 10% year-on-year to 28,721 units in the third quarter ended September 2025.
Housing sales: Home sales in India's 15 major Tier II cities rose 4% year-on-year to Rs 37,409 crore in the July-September quarter.
Data from real estate data analytics firm PropEquity showed that home sales in India's top 15 Tier II cities fell 4% year-on-year (YoY) to 39,201 units in the September quarter of this year. According to PropEquity, there has been a decline in volumes.
Which cities are included in Tier-2?
Tier-II cities are emerging as strong contenders for the country's urban development. Although smaller than Tier-I cities, they are experiencing rapid growth and development in sectors such as infrastructure, population, and economic development.
Tier-II cities have a population of 1 to 4 million people, and sometimes even more. Living costs are lower, and real estate is cheaper.
The presence of good colleges and institutions is contributing to the growing number of talented individuals. Infrastructure is also developing.
These 15 Tier-II cities include Ahmedabad, Surat, Gandhinagar, Vadodara, Jaipur, Nashik, Nagpur, Mohali, Bhubaneswar, Lucknow, Bhopal, Coimbatore, Goa, Trivandrum, and Kochi. In the third quarter ending September 2025, new supply declined 10% year-on-year to 28,721 units.
Giri Cell in Ahmedabad
In Ahmedabad, the largest property market among these 15 cities, home sales fell 6% year-on-year to 13,021 units during the July-September quarter. In Surat, sales fell 8% to 4,936 units.
Tier 2 cities are the main engines of India's growth story
Sameer Jasuja, Founder and CEO of PropEquity, said, "Tier 2 cities continue to be the main engine of India's growth story. Increasing employment opportunities, improving infrastructure, and strong connectivity have driven sustained demand for residential, commercial, and retail real estate." Lalit Parihar, Managing Director of Dholera-based real estate firm IG Group, said that four cities in Gujarat, namely Ahmedabad, Surat, Gandhinagar, and Vadodara, dominate both launches and sales among Tier 2 cities, accounting for over 60% of the total each.