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Housing sales in India's top 30 tier 2 cities saw a 13% decline in the July-September 2024 quarter, while new launches dropped by 34%, according to a report by Prop Equity. Sales fell to 41,871 units, down from 47,985 in the same period last year, and new launches dropped to 28,980 units. The west zone, including cities like Ahmedabad, Vadodara, and Surat, accounted for 72% of total sales. While cities like Sonepat and Panipat faced significant declines, Bhopal saw a 268% surge in new launches, indicating mixed performance across regions. These trends highlight the need for market adaptability to navigate evolving conditions.
In line with the trends seen in tier 1 cities, housing sales in the top 30 tier 2 cities have experienced a notable decline of 13% in the July-September quarter of 2024, while new launches have seen a significant drop of 34%. This information comes from a report released by Prop Equity, a real estate data analytics firm listed on the NSE. Advertisement
Specifically, housing sales in these tier 2 cities fell to 41,871 units during Q3 2024, compared to 47,985 units in the same period the previous year. Meanwhile, new launches decreased to 28,980 units in the July-September quarter of 2024, down from 43,748 units during the same timeframe last year. This decline highlights a cooling market in these regions, following a trend that has also been observed in larger tier 1 cities.
The report indicates that the west zone, which comprises key cities such as Ahmedabad, Vadodara, Gandhinagar, Surat, Goa, Nashik, and Nagpur, contributed significantly to the total sales figures, accounting for an impressive 72% of overall transactions. This suggests that while some areas are struggling, the west zone remains a stronghold for housing sales.
Among the cities that witnessed the largest decreases in new launches, Sonepat, Panipat, and Agra topped the list, indicating that these markets are facing particular challenges. Conversely, only eight cities in the report showed growth in new launches, with Bhopal leading the pack at an extraordinary increase of 268%. Following Bhopal, Dehradun saw a 100% rise, while Coimbatore experienced a 77% increase in new launches.
When examining state capitals specifically, Bhopal emerged as a standout, recording the highest rise in new launches at 268%. In stark contrast, Trivandrum faced the most significant decline, with new launches plummeting by 87%. Similarly, in terms of sales, Dehradun experienced a robust increase of 47%, while both Bhubaneswar and Chandigarh saw a decline of 18% each.
These trends reflect a complex landscape in the tier 2 housing market, with certain cities flourishing while others grapple with various challenges. As the market continues to evolve, it will be crucial for stakeholders to adapt to these shifting dynamics to capitalise on emerging opportunities.
In conclusion, the current downturn in housing sales and new launches in tier 2 cities underscores the need for market stakeholders to adapt to changing conditions. While some areas face significant challenges, others like Bhopal demonstrate potential for growth, suggesting that targeted strategies could yield positive outcomes in this shifting landscape.
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