Tier-2 city sales: Only Mohali and Lucknow buck trend, posting 34% and 6% YoY sales volume growth, a report by PropEquity as said

Housing sales value across the top 15 tier‑2 cities remained steady at ₹1.48 lakh crore in 2025, while sales volumes fell 10% YoY to 1,56,181 units, reflecting rising property prices and growing premiumisation. Visakhapatnam saw the steepest decline at 38%, followed by Bhubaneswar at 25% and Vadodara at 19%, according to NSE-listed real estate analytics firm PropEquity.Only Mohali and Lucknow bucked the trend, recording sales volume growth of 34% and 6% YoY, respectively, it said.

It said the growing shift towards high-ticket housing can be ascertained from the fact that homes priced under ₹1 crore saw 15% YoY decline in volumes in 2025 with its share dipping to 72% from 77% in 2024. Similarly, homes priced above ₹1 crore witnessed 9% growth in sales with its share rising to 28% from 23% in 2024.Going forward, beginning 2026, Ahmedabad can be regarded as a tier-1 city, having surpassed several established tier-1 markets in both housing launches and absorption. With its scale of development and depth of demand, the city now rightfully merits inclusion among India’s tier-1 urban centres, it said.

New supply across the top 15 tier-2 cities declined by 6% to 1,36,243 units in 2025, down from 1,45,139 units in 2024. The contraction was seen across price segments, with supply of homes priced under ₹1 crore declining by 5%, and those above ₹1 crore falling by 8%.

Mohali (108%), Bhopal (66%), Ahmedabad (3%) and Jaipur (2%) saw growth in new launches while the other 11 cities saw a decline of up to 57% with Bhubaneshwar witnessing the steepest decline.

The four cities of Gujarat accounted for 64% of the total launches in 2025.Samir Jasuja, founder and CEO of PropEquity, said, “The slowdown in housing sales over the past two years is largely due to a shrinking supply of homes priced below ₹1 crore-a segment that has traditionally driven demand in tier-2 cities. Rising land and construction costs, along with changing buyer aspirations, are pushing new launches into higher price brackets. As a result, tier-2 markets are increasingly mirroring tier-1 cities, where volumes are declining even as prices continue to rise.”

The government’s focus on tier-2 cities through enhanced urban development, improved connectivity, and the creation of industrial corridors and manufacturing hubs has driven sustained price appreciation. This has pushed even average housing units in many tier-2 markets beyond the ₹1 crore mark, leading to slower absorption. Going forward, this trend could be a cause for concern, as affordability pressures begin to impact not just premium segments but also affordable and mid-income housing in these cities, he said.