Housing sales in India’s top 15 tier-2 cities declined 4% year-on-year (YoY) to 39,201 units in Q3 2025, according to new data released by PropEquity, the NSE-listed real estate analytics firm.
Despite the drop in volume, sales value increased 4% YoY to ₹37,409 crore, indicating a shift toward premium and larger homes.

The report highlights that new launches fell sharper than sales, dropping 10% YoY to 28,721 units—a sign of continued consolidation among developers amid rising construction costs.

8 Out of 15 Cities Record Lower Sales; Bhubaneshwar Declines Most

Eight of the 15 monitored tier-2 markets saw a YoY decline in housing sales:

• Bhubaneshwar posted the steepest fall at –26%
• Coimbatore saw a –11% drop
• Vadodara declined –20%
• Surat fell –8%

Meanwhile, Trivandrum topped the chart with a 19% YoY rise, followed by Mohali (+18%), Jaipur (+16%), and Lucknow (+15%).

Ahmedabad Remains the Strongest Tier-2 Market

In terms of volume, Ahmedabad remained the largest market for both sales and launches in Q3 2025, reflecting its dominance in Western India’s real estate landscape.

Top performers in sales (Q3 2025 volume):

1. Ahmedabad – 13,021 units
2. Surat – 4,936 units
3. Gandhinagar – 3,496 units

New Launches Fall 10%; Bhubaneshwar Sees a Massive 88% Drop

The supply side witnessed a sharper contraction:

• New launches dipped 10% YoY, and a steeper 26% QoQ
• Eight cities recorded a YoY decline
• Bhubaneshwar saw the largest fall at –88%
• Mohali (–66%), Coimbatore (–63%), and Lucknow (–75%) also saw deep supply cuts

Only a handful of cities posted strong launch growth, with Trivandrum (↑550%), Bhopal (↑123%), and Nashik (↑55%) leading the surge.

Regional Trends: North India Bucks the Downtrend

Western India

Comprising Ahmedabad, Surat, Gandhinagar, Vadodara, Nashik, Nagpur and Goa:

• Sales: –6% YoY
• Launches: –6% YoY
• Contribution: 76% of all tier-2 sales; 78% of launches
• Despite being the largest market, it witnessed a consistent cooling-off.

Northern India

Cities: Lucknow, Mohali, Jaipur

• Sales: +16% YoY — the only region to post growth
• Launches: –27% YoY — developers remain cautious despite demand

Southern India

Cities: Coimbatore, Trivandrum, Kochi

• Sales: –7% YoY
• Launches: –8% YoY
• Demand holding steady, but supply tightened significantly

Central & Eastern India

Cities: Bhopal, Bhubaneshwar

• Sales: –14% YoY
• Launches: –17% YoY
• Bhubaneshwar pulled down overall regional performance

QoQ Data: Sales Down 3%, Launches Crash 26%

On a quarter-on-quarter basis:

• Sales volume: –3%
• Sales value: –1%
• New launches: –26%

The QoQ numbers suggest developers are “pausing” new supply and assessing the market before launching fresh inventory.

Shift Toward Premium Homes: PropEquity CEO

Commenting on the findings, Samir Jasuja, Founder & CEO, PropEquity, said:

“There has been a steady decline in new housing launches, especially in the high-volume affordable and mid-income segments. With rising input costs and evolving consumer aspirations pushing up home prices and home sizes, sales momentum in these markets has begun to moderate.”

However, he noted that tier-2 cities remain crucial to India’s real estate:

“Tier 2 cities are the key engines of India’s growth story. Employment, infrastructure, and connectivity continue to support demand across residential, commercial, and retail real estate.”

Also Read: Mumbai Property Registrations Rise Despite Shraadh Period

The post Housing Sales Drop 4% in India’s Top Tier-2 Cities in Q3 2025; New Launches Slide 10% appeared first on Square Feat India.