BusinessCORPORATE / BUSINESS

Housing sales in top 30 tier 2 cities decline 13%, launches fall 34% in Q3: PropEquity

by Suman Gupta

Ø Ahmedabad accounts for 32% of the total launches & 30% of the total sales with West Zone contributing 72% to the total sales and 71% to total launches

Ø Jaipur, Goa, Bhubaneshwar, Kochi & Mysore see fall in launches while Lucknow, Mohali, Bhopal see rise in launches. These cities saw drop in sales from 3% to 61%

New Delhi, October 21, 2024: In line with the trends seen in tier 1 cities, housing sales in top 30 tier 2 cities have fallen by 13% in July-September quarter of 2024 while new launches have declined by 34%, according to a report by NSE-listed real estate data analytics firm PropEquity.

Housing sales fell to 41,871 units in Q3 2024 against 47,985 units in the same period last year while launches fell to 28,980 units in July-September quarter of 2024 from 43,748 units in the same period last year, the report said.

The west zone comprising Ahmedabad, Vadodara, Gandhinagar, Surat, Goa, Nashik and Nagpur, contributed 72% to the total sales.

Commenting on the data, Samir Jasuja, CEO & Founder, PropEquity said: “The decline in sales and launches is on account of higher base effect as year 2023 had recorded historic highs. The low cost of living, availability of skilled workforce and advantageous operational cost for companies besides good connectivity and infrastructure in State Capitals have been driving demand for homes. However, as seen from an all-India context, the top 30 tier 2 cities have been underperforming as sales and launches with respect to top ten cities are only 1/3.”

Total Absorption
Location Q3-2023 Q3-2024 Y-o-Y
Agra 192 128 -33%
Ahmedabad 13855 12721 -8%
Amritsar 86 7 -92%
Bhiwadi 276 193 -30%
Bhopal 752 744 -1%
Bhubaneshwar 1486 1217 -18%
Chandigarh 406 334 -18%
Coimbatore 668 821 23%
Dehradun 173 255 47%
Gandhi Nagar 3356 3072 -8%
Goa 811 669 -18%
Guntur 371 242 -35%
Indore 491 267 -46%
Jaipur 2573 2492 -3%
Kochi 587 508 -13%
Lucknow 956 876 -8%
Ludhiana 254 150 -41%
Mangalore 447 317 -29%
Mohali 1161 930 -20%
Mysore 139 54 -61%
Nagpur 1959 1661 -15%
Nashik 3593 2689 -25%
Panipat 29 12 -59%
Raipur 745 414 -44%
Sonepat 80 37 -54%
Surat 5224 5015 -4%
Trivandrum 649 544 -16%
Vadodara 4813 4286 -11%
Vijayawada 557 440 -21%
Visakhapatnam 1296 776 -40%
Total 47985 41871 -13%

According to the report, the top three cities that witnessed maximum drop in launches were Sonepat, Panipat and Agra. Only 8 cities saw growth in new launches with top three being Bhopal (268%) followed by Dehradun (100%) and Coimbatore (77%).

West Zone contributed 71% to the total launches.

New Supply
Location Q3-2023 Q3-2024 Y-o-Y
Agra 64 0 -100%
Ahmedabad 14232 9190 -35%
Bhiwadi 0 0 0%
Bhopal 161 592 268%
Bhubaneshwar 2316 1107 -52%
Chandigarh 450 228 -49%
Coimbatore 515 909 77%
Dehradun 0 179 100%
Gandhi Nagar 2867 1879 -34%
Goa 521 398 -24%
Indore 351 194 -45%
Jaipur 2254 1743 -23%
Kochi 470 379 -19%
Lucknow 449 509 13%
Ludhiana 335 44 -87%
Mangalore 415 100 -76%
Mohali 966 1381 43%
Mysore 240 24 -90%
Nagpur 1670 1378 -17%
Nashik 3731 1290 -65%
Panipat 32 0 -100%
Raipur 351 363 3%
Sonepat 50 0 -100%
Surat 4198 4195 0%
Trivandrum 894 120 -87%
Vadodara 3001 2278 -24%
Vijayawada 477 150 -69%
Visakhapatnam 2738 350 -87%
Total 43748 28980 -34%

Among State Capitals, Bhopal witnessed the maximum rise in new launches at 268% while Trivandrum saw maximum decline in new launches at 87%. Similarly, Dehradun saw maximum rise in sales at 47% while Bhubaneshwar and Chandigarh saw maximum decline in sales at 18% each.

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

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