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PropEquity's latest report highlights a 65% rise in the weighted average prices of new launches in Jaipur, positioning the city at the forefront of real estate growth among 25 of 30 tier II cities from 2023 to October 2024. Guntur and Bhubaneswar followed with significant gains, while cities like Sonepat and Mysore experienced price declines. Affordable land, enhanced infrastructure, and growing demand have driven premium housing supply and investor interest. Goa stood out as the only tier II city with prices exceeding INR 10,000 per square foot, reflecting the expanding scope of investment opportunities in India's rapidly evolving real estate market.
A report by PropEquity, an NSE-listed data analytics firm, reveals dynamic trends in the pricing of new housing projects across 30 tier II cities in India from 2023 to October 2024. Prices surged in 25 cities, with Jaipur leading the growth at 65%, as the average cost rose from INR 4,240 to INR 6,979 per square foot. Indore and Dehradun followed with increases of 20% and 14%, respectively. On the other hand, five cities, including Bhopal, Mohali, and Sonipat, recorded price declines, with Sonipat experiencing the steepest drop of 26%. Advertisement
Northern India saw notable growth in cities like Agra (59%), Chandigarh (34%), and Bhiwadi (25%), though these cities had limited new launches, ranging between three to five projects. In Southern India, Guntur witnessed a significant 51% increase, with prices reaching INR 5,169 per square foot, while Visakhapatnam and Mangalore reported growth rates of 29% and 41%. However, Mysore and Trivandrum faced declines of 14% and 4%, respectively. Western India also exhibited positive trends, with Gandhi Nagar reporting a 19% increase, reaching INR 4,844 per square foot, and Surat and Nagpur recording growth of 14% and 12%, respectively.
In Eastern India, Bhubaneshwar experienced a 15% rise, with prices reaching INR 7,731 per square foot, while Raipur saw a 14% increase to INR 3,810 per square foot. Goa emerged as the sole city among the tier II locations to surpass INR 10,000 per square foot in weighted average launch prices. Meanwhile, cities like Vijayawada, Surat, Vadodara, and Gandhi Nagar continued to maintain prices below INR 5,000 per square foot. PropEquity's comprehensive data focuses on RERA-approved projects across 44 Indian cities, encompassing 14 tier I and 30 tier II cities. These include prominent locations such as Amritsar, Jaipur, Indore, Visakhapatnam, and Bhubaneshwar, offering detailed insights into India's evolving real estate market.
Samir Jasuja, Founder and CEO of PropEquity, noted that tier II cities are drawing heightened interest from developers, investors, and corporates. Factors such as affordable land prices, enhanced connectivity, and strong demand for premium housing have spurred this growth. Established developers and new entrants alike are leveraging the potential of these cities as emerging economic and employment hubs, driven by the next chapter of India's urban expansion. Cities like Jaipur, Guntur, Gandhi Nagar, and Bhubaneshwar, which have seen price increases ranging from 15% to 65%, exemplify this trend.
This data signifies the pivotal role of tier II cities in shaping India's future real estate landscape. Their evolution into dynamic growth hubs highlights their critical role in advancing sustainable development and expanding investment prospects nationwide.
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