Residential property launch prices across India's top 10 Tier II cities have risen up to 94% in new launch projects over the last five fiscal years ending 2023-24, according to data analytics firm PropEquity. This significant increase is attributed to growing consumer confidence, a buoyant job market, and robust infrastructure development.

PropEquity's research indicates that in the past five fiscal years, 24 out of 30 Tier II cities experienced a double-digit rise in launch prices, while the remaining six cities saw single-digit price increases. Among the top 10 cities, residential property launch prices have increased between 54% and 94% from FY2020 to FY2024. Agra, located in the North Zone, recorded the highest rise at 94%, with Goa at 90%, Mangalore at 56%, and Indore at 72% in the West, South, and Central/East Zones, respectively.

Commenting on the data, Mr. Samir Jasuja, Founder and CEO of PropEquity, stated, "Tier II cities have witnessed a significant price appreciation primarily due to increased demand, as absorption has been significantly higher than new launches in the last five fiscal years. The rise in consumer confidence fueled by economic growth, a boost in connectivity, infrastructure development, and strong job markets has driven up prices in double digits in the majority of these cities." He further added, "With the increased interest of home seekers and investors, Tier II cities have also attracted reputed developers in the last five fiscal years. The trend suggests the growing importance of these cities in India's economic and socio-cultural development."

Tier II cities are appealing due to their lower cost of living, which makes them attractive for homebuyers seeking value compared to Tier I cities. Enhanced connectivity in these cities brings amenities such as educational institutions and healthcare facilities closer, making them more appealing for families and young professionals.

In terms of specific price changes, Agra's residential property prices increased from INR 3,692 per sq. ft. in FY 2019-20 to INR 7,163 per sq. ft. in FY 2023-24, reflecting a 94% rise. Goa's prices went up from INR 5,378 to INR 10,219, marking a 90% increase. Ludhiana saw prices rise from INR 3,689 to INR 6,973, a 89% increase. Indore's prices went from INR 2,767 to INR 4,759, an increase of 72%. Chandigarh's prices increased from INR 4,566 to INR 7,762, showing a 70% rise. Dehradun saw a 68% increase, with prices rising from INR 4,531 to INR 7,612. Ahmedabad experienced a 60% increase, with prices going from INR 3,250 to INR 5,200. Bhubaneshwar's prices increased by 58% from INR 4,659 to INR 7,361. Mangalore saw a 57% rise, with prices increasing from INR 4,794 to INR 7,527. Trivandrum's prices rose from INR 4,299 to INR 6,621, a 54% increase.

In the West Zone, Goa, Ahmedabad, Nagpur, Gandhi Nagar, Vadodara, Nashik, and Surat saw property prices increase between 45% and 90% between FY 2019-20 and FY 2023-24. Goa's prices surged by 90%, from INR 5,378 to INR 10,219. Ahmedabad experienced a 60% rise, with prices increasing from INR 3,250 to INR 5,200. Nagpur saw a 51% increase, with prices rising from INR 5,294 to INR 7,994. Gandhi Nagar's prices rose by 49%, from INR 3,021 to INR 4,501. Vadodara experienced a 48% increase, with prices rising from INR 2,605 to INR 3,856. Nashik's prices increased by 46%, from INR 4,278 to INR 6,246, and Surat saw a 45% rise, with prices going from INR 2,777 to INR 4,027.

In the North Zone, Agra, Ludhiana, Chandigarh, Dehradun, Jaipur, Mohali, and Lucknow saw double-digit growth between 38% and 94% between FY 2019-20 and FY 2023-24. Agra's prices increased by 94%, from INR 3,692 to INR 7,163. Ludhiana experienced an 89% increase, with prices going from INR 3,689 to INR 6,973. Chandigarh saw a 70% rise, with prices rising from INR 4,566 to INR 7,762. Dehradun's prices increased by 68%, from INR 4,531 to INR 7,612. Jaipur experienced a 49% rise, with prices going from INR 3,877 to INR 5,776. Mohali saw a 39% increase, with prices rising from INR 5,986 to INR 8,320, and Lucknow experienced a 38% rise, with prices going from INR 4,194 to INR 5,788.

In the South Zone, Mangalore, Trivandrum, Mysore, Kochi, Coimbatore, and Visakhapatnam experienced double-digit growth ranging from 11% to 57% between FY 2019-20 and FY 2023-24. Mangalore's prices increased by 57%, from INR 4,794 to INR 7,527. Trivandrum saw a 54% rise, with prices going from INR 4,299 to INR 6,621. Mysore experienced a 53% increase, with prices rising from INR 4,045 to INR 6,189. Kochi saw a 43% rise, with prices going from INR 5,266 to INR 7,530. Coimbatore experienced a 38% increase, with prices rising from INR 4,426 to INR 6,108. Visakhapatnam saw an 11% increase, with prices going from INR 5,321 to INR 5,906. Vijayawada saw a 7% increase, with prices rising from INR 3,637 to INR 3,892.

In the East and Central Zone, Indore, Bhubaneshwar, Bhopal, and Raipur saw double-digit growth ranging from 26% to 72% between FY 2019-20 and FY 2023-24. Indore's prices increased by 72%, from INR 2,767 to INR 4,759. Bhubaneshwar saw a 58% rise, with prices going from INR 4,659 to INR 7,361. Bhopal experienced a 52% increase, with prices rising from INR 3,486 to INR 5,299. Raipur saw a 26% increase, with prices going from INR 3,521 to INR 4,437.

PropEquity tracks real estate data for RERA-approved projects across 44 Indian cities, including 14 Tier I cities and 30 Tier II cities. The 30 Tier II cities covered in the study 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.

About PropEquity: P.E. Analytics Ltd. owns and operates PropEquity, which is India's largest online real estate data and analytics platform. It covers over 1,70,000+ projects from 57,000+ developers across 44 cities in India, with more than 16 years of catalogued data. PropEquity adds approximately 700 projects every month and is a premium Business Intelligence product - a first of its kind in India in the Realty space.