Advertisement
Housing sales in India's top 15 tier 2 cities experienced a 4% decline in Q3 2025, reaching 39,201 units, while the total sales value increased by 4% to INR 37,409 crore, reflecting a trend toward premium housing. Launches dropped 10% to 28,721 units, with North India showing the steepest fall. Ahmedabad led in both sales and launches, while Bhubaneshwar and Mohali recorded the largest declines. Despite moderate volume changes, tier 2 cities continue to benefit from expanding employment, infrastructure development, and connectivity, supporting ongoing demand in residential, commercial, and retail real estate.
Housing sales in India's leading tier 2 cities declined marginally in Q3 2025, with total units sold dropping 4% year-on-year to 39,201. Despite this, the overall sales value rose by 4% to INR 37,409 crore, suggesting that buyers are increasingly opting for higher-value or premium properties. Advertisement
New housing launches also slowed, decreasing 10% to 28,721 units in the quarter ending September 2025. Among the 15 cities tracked, eight reported a year-on-year fall in sales, with Bhubaneshwar experiencing the sharpest drop of 26%. In contrast, Trivandrum posted the highest growth in sales at 19%. Launches were similarly uneven, with Bhubaneshwar recording an 88% decline, and eight cities overall witnessing lower new supply. Ahmedabad maintained its position as the top market for both sales and new launches.
PropEquity's Founder and CEO, Samir Jasuja, observed that the reduction in housing launches is especially evident in the affordable and mid-income segments. Rising construction costs and shifting consumer expectations toward larger and more premium homes have moderated sales growth. However, he emphasized that tier 2 cities remain crucial to India's real estate landscape, with expanding employment opportunities, improving infrastructure, and better connectivity sustaining demand across residential, commercial, and retail sectors.
Quarter-on-quarter figures also showed a slowdown, with sales volume down 3%, sales value down 1%, and launches dropping 26%.
Regionally, Western India which includes Ahmedabad, Surat, Gandhi Nagar, Vadodara, Nashik, Nagpur, and Goa experienced a 6% year-on-year and 4% quarter-on-quarter decline in sales, accounting for 76% of total transactions. Northern India, covering Lucknow, Mohali, and Jaipur, posted a 16% year-on-year and 7% quarter-on-quarter increase. Southern India, comprising Coimbatore, Trivandrum, and Kochi, saw a 7% year-on-year decline but a 3% quarter-on-quarter rise. Central and Eastern India, which includes Bhopal and Bhubaneshwar, recorded a 14% year-on-year and 13% quarter-on-quarter fall in sales.
In terms of new launches, Western India accounted for 78% of total new supply but experienced a 6% year-on-year and 18% quarter-on-quarter decline. Northern India saw a 27% year-on-year and 57% quarter-on-quarter fall in launches. Southern India recorded an 8% year-on-year and 19% quarter-on-quarter decrease, while Central and Eastern India had 17% and 26% declines, respectively.
Ahmedabad remained the most active market, followed by cities like Jaipur and Nashik. The cities showing the steepest declines in both sales and launches were Bhubaneshwar, Mohali, and Lucknow, reflecting varied demand patterns and supply constraints across regions.
PropEquity, the NSE-listed data analytics firm behind the report, operates India's largest online real estate data platform. It tracks over 1,70,000 projects by 57,000 developers across 44 cities, cataloguing more than 17 years of data and adding roughly 700 new projects each month, offering a comprehensive view of market trends.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
