Real estate prices in Tier II cities have surged by an average of 65% since 2023, according to a report by PropEquity, a leading real estate data and analytics platform. Out of the top 30 Tier II cities analyzed, 25 witnessed significant price increases, while five cities experienced a decline in newly launched housing projects.
Cities such as Jaipur, Guntur, Gandhinagar, and Bhubaneswar saw price hikes ranging from 15% to 65% in the past year. In northern India, Jaipur recorded the steepest rise in weighted average prices, increasing by 65% from ₹4,240 per sq. ft. to ₹6,979 per sq. ft. Other cities like Indore and Dehradun also saw price increases of 20% and 14%, respectively. Conversely, cities like Sonepat, Mohali, and Bhopal experienced price drops of up to 26%.
PropEquity's CEO, Samir Jasuja, attributed this trend to growing interest in Tier II cities from developers, corporations, and financial institutions. Factors such as affordable land, improved connectivity infrastructure, and rising demand for premium and luxury housing have made these cities attractive hubs for growth and employment.
Additionally, cities like Agra, Chandigarh, and Bhiwadi recorded price growth of 59%, 34%, and 25%, respectively, reflecting the ongoing expansion and development in these areas.
The report highlights the increasing prominence of Tier II cities in India's real estate market as they transform into key drivers of the country’s economic growth.
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