Housing prices in India’s 25 top Tier II cities have skyrocketed between October 2023 and October 2024, with the lead taken by Jaipur, which saw an increase of 65%, a new report by PropEquity. Agra follows with 59% and Guntur, third with 51%. Though, not all cities have this growth during the cited period as Bhopal, Mohali, Sonipat, and Trivandrum have recorded declines.
The report attributes the growth in prices to growing interest by developers, corporates, financial institutions, and investors, attributed to the availability of relatively affordable land, improved connectivity infrastructure and increasing demand. These factors have caused a significant increase in the premium and luxury housing projects in emerging growth centers, which include Jaipur, Guntur, Gandhinagar, and Bhubaneswar, where prices grew between 15% and 65%.
Jaipur logged the highest rise in new-launch prices in North India during this period. Its new launches moved up 65% from the Rs 4,240 sq ft to Rs 6,979 sq ft price. Indore and Dehradun followed at 20% and 14% respectively. This is in contrast to Sonipat, where prices declined by as much as 26%. Declines were also reported by Mohali (8%) and Bhopal (5%). Price increase was also felt in Agra, Chandigarh, and Bhiwani with 59%, 34%, and 25%, respectively; however, new launch numbers in these cities are not that high.
Guntur in Southern India recorded a 51 per cent rise in new launch price to Rs 5,169 psf while Mangalore and Visakhapatnam also grew considerably. Mysore and Trivandrum depreciated by 14 per cent and 4 per cent, respectively.
In Western India, the new launch prices went up by 19% in Gandhinagar at Rs 4,844 per square foot, while it registered smaller increases in Surat and Nagpur. Eastern India saw a 15% increase in Bhubaneswar at Rs 7,731 per square foot. Raipur registered a 14% increase.
Goa is the only city that has crossed the Rs 10,000 per square foot mark. However, cities like Vijayawada, Gandhinagar, Surat, Vadodara, Ahmedabad, and Raipur are maintaining prices below Rs 5,000 per square foot.
