by THO
The weighted price of new launch projects in top 30 tier II cities saw an increase of up to 65% between 2023 and October 2024. While 26 cities saw a rise in prices, four cities witnessed a decline, according to a report by NSE-listed data analytics firm PropEquity.
In North India, Jaipur saw the highest rise in weighted average price of new launch projects at 65% from ₹4240 per sq. ft. to ₹6979 per sq. ft. between 2023-October 2024. This was followed by Indore (20%) and Dehradun (14%). Sonepat at 26% witnessed the highest fall in price followed by Mohali (8%) and Bhopal (5%).
While Agra, Chandigarh and Bhiwadi saw 59%, 34% and 25% growth in prices respectively, the new launches in these cities were very few (between 3-5 projects) during this period.
Cities like Bhopal, Mohali, Sonepat, Trivandrum and Mysore saw housing prices fall by up to 26%, according to the report.
Price rise in Tier 2 cities in the Southern and Western regions
In Southern India, Guntur saw the weighted average price of new launch projects rise by 51% to ₹5169 per sq. ft. between 2023 and October 2024 followed by Mangalore (41%), Visakhapatnam (29%). Mysore and Trivandrum witnessed a fall in prices at 14% and 4% respectively.
In Western India, Gandhi Nagar saw the weighted average price of new launch projects rise by 19% to ₹4844 per sq ft between 2023 and October 2024, followed by Surat (14%) and Nagpur (12%).
In Eastern India, Bhubaneshwar saw the weighted average price of new launch projects rise by 15% to ₹7731 per sq ft between 2023 and October 2024 and Raipur by 14% to ₹3810 per sq. ft.
Average launch prices in Goa and Surat
Goa is the only city amongst 30 tier II cities that has seen the weighted average launch price cross the ₹10,000 per sq. ft. threshold.
Prices in cities like Vijayawada, Gandhi Nagar, Surat, Vadodara, Ahmedabad and Raipur continue to stay below the ₹5000 per sq. ft. mark.
Also Read: Lucknow tops tier 2 cities in shopping centre space, Kochi gets second spot: Knight Frank India
PropEquity captures real estate data for RERA approved projects in 44 Indian Cities including 14 Tier I cities and 30 Tier II Cities. These include Amritsar, Mohali, Ludhiana, Chandigarh, Panipat, Dehradun, Bhiwadi, Sonepat, Jaipur, Agra, Lucknow, Bhopal, Indore, Visakhapatnam, Vijayawada, Guntur, Goa, Mangalore, Mysore, Coimbatore, Kochi, Trivandrum, Raipur, Bhubaneshwar, Ahmedabad, Gandhi Nagar, Vadodara, Surat, Nashik and Nagpur.
“Tier II cities have seen renewed interest from developers, corporates, financial institutions and the investor community. The cheap availability of land in these cities followed by infrastructure development and strong demand have led to increased supply of premium and luxury housing from not just incumbent developers but also new entrants,” said Samir Jasuja, founder and CEO, PropEquity.
