Tier-II housing sales fall 10% in 2025, value steady at Rs 1.48 lakh crore: Report

Housing sales across 15 major tier-II cities fell by 10 per cent in 2025 to 1,56,181 units, even as the total sales value remained unchanged at Rs 1.48 lakh crore, according to data released by real estate analytics firm PropEquity.The platform, part of listed entity P E Analytics Ltd, said that while the number of homes sold declined year-on-year, the overall transaction value held firm, indicating a shift towards higher-priced properties, according to news agency PTI.

Fewer affordable homes drag volumes lower

Explaining the trend, Samir Jasuja, founder and CEO of PropEquity, said the slowdown seen over the past two years is largely linked to falling supply in the sub-Rs 1 crore category, a segment that has traditionally powered demand in tier-II markets.“The slowdown in housing sales over the past two years is largely due to a shrinking supply of homes priced below Rs 1 crore — a segment that has traditionally driven demand in tier-2 cities,” Jasuja said, as quoted by PTI.He added that rising land and construction costs, along with evolving buyer preferences, are pushing developers to launch projects in higher price brackets.“As a result, tier-II markets are increasingly mirroring tier-1 cities, where volumes are declining even as prices continue to rise,” he said.

Premium segment gains ground

Data from PropEquity showed that homes priced above Rs 1 crore recorded a 9 per cent growth in sales in 2025. Their share in total housing sales rose to 28 per cent, up from 23 per cent in 2024.Industry leaders echoed this shift towards premium housing.Rohit Kishore, CEO of Hero Realty, said, “Tier-II cities are seeing healthy and consistent growth in premium homebuying, particularly in the Rs 1–2 crore bracket.”Manish Agarwal, president of CREDAI Haryana and managing director of Satya Group, said improved infrastructure, better connectivity and expanding job opportunities are driving both end-users and investors towards residential assets in these cities.Aman Sharma, MD and founder of Aarize Group, added that demand for homes priced above Rs 1 crore is rising steadily.“Buyers in these markets are prioritising lifestyle-led upgrades, larger sizes, and integrated communities over affordability,” he said.Yashank Wason, managing director of Royal Green Realty, noted that tier-II cities are gaining importance in the broader real estate landscape.

City-wise performance shows mixed trend

Among the 15 cities analysed, most reported a decline in housing sales in 2025 compared to the previous year.Ahmedabad recorded an 8 per cent fall in sales to 51,148 units from 55,315 units in 2024. Surat saw a sharper 15 per cent drop to 19,835 units, down from 23,342 units.Vadodara registered a 19 per cent decline to 13,798 units, while Gandhinagar saw a marginal dip to 13,710 units from 13,884 units.Nashik reported a 10 per cent fall to 11,188 units, and Jaipur saw a 5 per cent decline to 9,758 units.Nagpur witnessed an 18 per cent drop in sales to 6,260 units, while Bhubaneshwar saw one of the steepest falls at 25 per cent, with sales dropping to 4,885 units from 6,538 units.In Coimbatore, sales declined 4 per cent to 3,702 units, and Bhopal saw a 5 per cent fall to 3,599 units.Goa’s market remained largely stable, with sales slipping marginally to 3,507 units from 3,518 units.Visakhapatnam recorded the sharpest drop among the cities tracked, with sales plunging 38 per cent to 2,406 units from 3,858 units. Kochi also saw a 17 per cent decline to 2,214 units.However, not all markets weakened. Mohali stood out with a 34 per cent jump in sales to 6,118 units from 4,554 units. Lucknow also bucked the broader trend, posting a 6 per cent rise in sales to 4,053 units in 2025 from 3,812 units the previous year.Overall, the data suggests that while demand in tier-II cities remains resilient in value terms, a clear shift towards higher-priced homes is reshaping these markets.