Home prices surge upto 65% in 25 Tier II cities in 1 yr, led by Jaipur

Bhopal, Mohali see decline, while Jaipur and Guntur experience price surges. Goa hits Rs 10,000/sq.ft

There has been a dramatic surge in housing prices across the top 25 tier II cities in India between October 2023 and October 2024, with Jaipur recording the highest increase at 65% per cent, according to a report by PropEquity. 

 

Agra came in at second spot at 59%, followed by Guntur in third place with a 51% rise. However, several cities like Bhopal, Mohali, Sonepat, and Trivandrum saw price declines during the same period. Goa is the only city to cross the Rs 10,000 per square foot mark, while cities in Gujarat remain below Rs 5,000 per square foot. 

 

 

"“Tier II cities have seen renewed interest from developers, corporates, financial institutions and investor community. The cheap availability of land in these cities followed by massive development of connectivity infrastructure and strong demand have led to increased supply of premium and luxury housing from not just incumbent developers but new entrants cashing in on the potential of these cities as growth centres and employment hubs driving the next phase of India growth story. Cities like Jaipur, Guntur, Gandhi Nagar and Bhubaneshwar have seen price rise between 15-65% in the last one year," said Samir Jasuja, Founder & CEO, PropEquity. 

 

In North India, Jaipur saw the highest rise in weighted average price of new launch projects at 65% from Rs 4240 per sq. ft. to Rs 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.

 

In Southern India, Guntur saw weighted average price of new launch projects rise by 51% to Rs 5169 per sq. ft. between 2023 and October 2024 followed by Mangalore (41%), Visakhapatnam (29%). Mysore and Trivandrum witnessed fall in prices at 14% and 4% respectively. 

 

In Western India, Gandhi Nagar saw weighted average price of new launch projects rise by 19% to Rs 4844 per sq. ft. between 2023 and October 2024, followed by Surat (14%) and Nagpur (12%).

 

In Eastern India, Bhubaneshwar saw weighted average price of new launch projects rise by 15% to Rs 7731 per sq. ft. between 2023 and October 2024 and Raipur by 14% to Rs 3810 per sq. ft. 

 

Goa is the only city amongst 30 tier II cities that has seen weighted average launch price cross the Rs 10,000 per sq. ft. threshold.

 

Prices in cities like Vijayawada, Gandhi Nagar, Surat, Vadodara, Ahmedabad and Raipur continue to stay below the Rs 5000 per sq. ft. mark.

 

30 Tier II cities 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.

 

PropEquity captured real estate data for RERA approved projects in 44 Indian Cities including 14 Tier I cities and 30 Tier II Cities.