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Housing sales across India's top 15 tier-2 cities declined 10% year-on-year in 2025 to 1,56,181 units, while new launches fell 6% to 1,36,243 units, according to data released by PropEquity. Despite the drop in volumes, total sales value remained flat at INR 1.48 lakh crore, reflecting rising property prices and growing premiumisation. Sales of homes priced below INR 1 crore fell 15% YoY, reducing their share to 72%, while homes priced above INR 1 crore grew 9% YoY, increasing their share to 28%. Gujarat's four cities accounted for nearly two-thirds of total sales and launches, with Ahmedabad alone contributing 33% of total absorption. The report indicates that tier-2 markets are increasingly mirroring tier-1 cities in pricing trends and demand patterns.
Housing markets across the top 15 tier-2 cities witnessed a moderation in 2025, with sales volumes declining 10% year-on-year to 1,56,181 units from 1,72,599 units in 2024, according to data from NSE-listed real estate analytics firm PropEquity. However, the overall sales value remained steady at INR 1.48 lakh crore, underscoring continued price appreciation and a shift toward higher-ticket housing. Advertisement
Among the 15 cities tracked, only Mohali and Lucknow recorded growth in absorption, rising 34% and 6% YoY respectively. The remaining 13 cities saw declines of up to 38%, with Visakhapatnam registering the steepest fall. Ahmedabad continued to lead in absolute sales numbers with 51,148 units sold in 2025, though this marked an 8% decline from the previous year. Surat (-15%), Vadodara (-19%), Nashik (-10%), Nagpur (-18%), Bhubaneshwar (-25%) and Kochi (-17%) also saw notable declines.
In absolute terms, Gujarat's four cities Ahmedabad, Gandhinagar, Vadodara and Surat together accounted for 63% of total sales across the top 15 tier-2 markets, highlighting the state's dominance in regional housing activity. Ahmedabad alone contributed 33% of total absorption.
A key trend emerging from the data is the sharp shift toward premium housing. Sales of homes priced below 1 crore declined 15% YoY in 2025, with their share in total sales dropping to 72% from 77% in 2024. Conversely, homes priced above INR 1 crore recorded a 9% increase in sales volumes, raising their market share to 28% from 23% a year earlier.
Samir Jasuja, Founder & CEO of PropEquity, attributed the slowdown largely to a shrinking supply of homes priced below INR 1 crore, traditionally the demand driver in tier-2 cities. Rising land and construction costs, coupled with evolving buyer aspirations, are pushing new developments into higher price brackets. As a result, tier-2 cities are increasingly mirroring tier-1 markets, where volumes are moderating even as prices continue to rise.
New supply also declined 6% YoY to 1,36,243 units in 2025 from 1,45,139 units in 2024. Supply contraction was seen across price categories, with launches below INR 1 crore falling 5% and those above INR 1 crore declining 8%. Mohali (108%), Bhopal (66%), Ahmedabad (3%) and Jaipur (2%) were exceptions, recording growth in launches, while Bhubaneshwar saw the steepest drop at 57%.
The four Gujarat cities accounted for 64% of total new launches in 2025. Going forward, PropEquity noted that affordability pressures may intensify if price escalation continues, potentially impacting not only premium housing but also affordable and mid-income segments in tier-2 markets.
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