The crisis is most evident in the affordable housing segment, where homes priced under ₹1 crore — long the backbone of tier-2 demand — saw a steep 15% drop in volumes, reducing their market share from 77% in 2024 to just 72% in 2025. In contrast, high-end homes above ₹1 crore posted a modest 9% growth, pushing their share up to 28%. This shift toward premiumisation is mirroring the slowdown seen in tier-1 cities, where volumes fall while prices keep climbing.

Thirteen of the 15 cities tracked suffered sales declines of up to 38%, with Visakhapatnam hit hardest. Only Mohali (up 34%) and Lucknow (up 6%) bucked the trend. Gujarat’s four major cities — Ahmedabad, Surat, Vadodara, and Gandhinagar — still dominated, accounting for 63% of total sales, with Ahmedabad alone contributing 33% (51,148 units, down 8%). However, even these strongholds felt the pinch, with Surat down 15%, Vadodara 19%, and Gandhinagar nearly flat at -1%.

New supply is drying up too, declining 6% to 1,36,243 units from 1,45,139 in 2024. Launches of sub-₹1 crore homes fell 5%, while those above ₹1 crore dropped 8%. Mohali saw a massive 108% surge in new launches, and Bhopal rose 66%, but 11 cities faced cuts of up to 57%, led by Bhubaneshwar’s steep plunge.

Samir Jasuja, Founder & CEO of PropEquity, warned of deeper structural issues: “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.”

He added that government initiatives — including urban development, better connectivity, and industrial corridors — have fueled price appreciation, making even average homes unaffordable in many tier-2 markets. “This 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.”

With Ahmedabad poised to graduate to tier-1 status in 2026 due to its massive scale and demand, the broader tier-2 ecosystem faces mounting headwinds. The data paints a troubling picture of a market sliding into stagnation, where fewer homes are sold, fewer are built, and the dream of affordable homeownership slips further away for millions.

The post India’s Tier-2 Real Estate Market in Freefall: Housing Sales Plunge 10%, Launches Tumble 6% appeared first on Square Feat India.

Data from industry leader Awfis Space Solutions highlights this shift — its Tier-2 city presence expanded by nearly 25% in the last year, with new signings in high-quality Grade A assets forming 100% of additions between June 2024 and June 2025.

The appetite for flexible workspaces in Tier-2 locations is being driven by:

• First-time mid-sized GCC entrants setting up operations outside metros
• Expanding back-office and satellite setups by large enterprises
• Landlords in smaller cities upgrading to Grade A inventory
• Businesses seeking to reduce operational costs without compromising quality

Awfis’ operational capacity grew 40% YoY to 1,40,186 seats in June 2025, with 59% of its total portfolio now occupied by large-format 100+ seat cohorts. The company’s strong Tier-2 momentum mirrors a broader sector trend — smaller cities are now seen as profitable, scalable markets rather than experimental outposts.

Occupancy trends remain healthy, with 84% utilisation in centres older than 12 months and 73% overall. Operators are increasingly targeting high-potential micro-markets in cities like Indore, Coimbatore, Jaipur, and Chandigarh, where corporates are actively seeking ready-to-move-in premium offices.

Financially, Awfis’ numbers back the demand narrative — Q1FY26 revenue rose 30% YoY to ₹335 crore, with operating EBITDA margins hitting 37.8%. These gains are being supported by landlord confidence in Tier-2 markets and the availability of institutional-grade spaces.

As the flexible workspace market matures, Tier-2 cities are emerging as the next big battleground, offering operators a combination of cost efficiency, fresh demand pipelines, and untapped enterprise relationships.

Also Read: Minimalist Hotels Launches Coworking Spaces

The post Tier-2 Cities Outpace Metros in Coworking Boom — Demand Jumps 25% in Just One Year appeared first on Square Feat India.

Emerging Trends: Tier-2 Cities and Mini-Metros Surge in Popularity

One of the most striking trends from the report is the rise of tier-2 cities and mini-metros as prime destinations for property seekers. Popular lifestyle destinations such as Goa, Nainital, Dehradun, Shimla, Karnal, and Rishikesh have witnessed remarkable year-on-year growth in residential demand. Goa, for instance, experienced an impressive 60.89% increase, while cities like Shimla and Nainital saw growths of 28% and 43%, respectively.

In addition to these hill stations and tourist hotspots, cities with strong religious significance have also become attractive options for real estate investors. Locations like Ayodhya, Puri, and Shirdi have witnessed a surge in demand, with Puri and Shirdi seeing increases of 52% and 67%, respectively.

Vastu Considerations: A Growing Trend

A unique and culturally significant trend emerging in the report is the rising preference for vastu-compliant homes. According to the findings, 51% of searches related to vastu preferences originated from Bengaluru, Hyderabad, and Mumbai. Regional preferences also varied, with Kolkata homebuyers particularly favoring Southeast-facing properties (22%), while in Ahmedabad, 49% of buyers sought East-facing homes. Similarly, Chennai buyers were notably inclined towards East-facing properties, with 30% prioritizing this direction in their searches.

Compact Homes and Higher Floors: Changing Preferences in Metro Cities

The report also reveals notable preferences in metro cities, where homebuyers are increasingly seeking compact homes and higher-floor residences. In Mumbai, 63% of homebuyers are looking for compact 2/2.5 BHK units. There is also a growing demand for higher floors, with 71% of Mumbai homebuyers searching for homes located on the 5th floor or higher. Additionally, 67% of Mumbai buyers expressed a preference for properties that include at least one parking spot.

In contrast, Delhi buyers have different demands. A striking 20% of Delhi homebuyers prioritize homes with at least three parking spaces, a preference not observed in other metros. Interestingly, only 17% of homebuyers in the capital showed interest in higher-floor properties, diverging from trends in cities like Mumbai.

Rental Market Preferences: Regional Differences in Furnishings

When it comes to the rental market, regional preferences also vary significantly. In the tech hubs of Bengaluru and Noida, 63% and 60% of home seekers prefer unfurnished rental homes, indicating a demand for personalized living spaces. On the other hand, Hyderabad presents a different trend, with 41% of renters favoring fully furnished homes. This highlights the significant regional differences in rental housing needs across India.

Concluding Insights

Magicbricks’ 2024 report paints a comprehensive picture of the changing dynamics in India’s real estate market. As homebuyers increasingly seek compact, vastu-compliant, and well-located homes, developers and investors must stay attuned to these shifting preferences. With rising demand in emerging cities and evolving needs in metro areas, the Indian real estate sector is poised for continued growth and transformation, offering exciting opportunities for both buyers and investors alike.

The report underscores the importance of understanding regional variations in home preferences, whether in the direction a home faces, its floor level, or even the type of furnishings in rental properties. As India continues to evolve, the real estate market is becoming more tailored to the diverse and dynamic aspirations of its homebuyers.

Also Read: Noida and Ahmedabad Lead Inventory Surge as Indian Real Estate Market Heats Up

The post How India Searched for Homes in 2024 appeared first on Square Feat India.

The Inquiry:
The Redditor, concerned about the high cost of living in the UK and potential job loss, inquired about the feasibility of settling in India with ₹1.25 crore. The user was specifically interested in tier-2 cities such as Noida, Lucknow, Patna, Jamshedpur, and Raipur, noting that metropolitan areas like Bangalore, Gurgaon, Delhi, and Mumbai were too expensive. The question posed was whether ₹1.25 crore would be enough to buy a home and maintain a comfortable lifestyle while pursuing a remote or local IT job.

Reddit Community’s Insights:
The Reddit community offered detailed advice based on their experiences and knowledge of the Indian real estate and cost-of-living landscape. Here’s a summary of the insights:

1. Affordable Cities:

• Noida and Lucknow: These cities were highlighted as relatively affordable, with lower real estate prices compared to metropolitan areas. Noida, being part of the National Capital Region (NCR), offers good connectivity and infrastructure.
• Patna: Known for its lower cost of living and property prices, Patna could be a viable option for those looking for affordability.
• Jamshedpur and Raipur: Both cities were noted for their affordable housing markets and lower overall living costs. Jamshedpur’s industrial base and Raipur’s growing infrastructure make them attractive for resettling.

1. Cost of Living and Property Prices:

• The consensus was that ₹1.25 crore is generally sufficient to buy a comfortable home in tier-2 cities. In these cities, the cost of real estate is significantly lower than in major metropolitan areas, allowing for the purchase of property while retaining a substantial portion of the funds for other expenses.

1. Adjusting to Life in Tier-2 Cities:

• Some Redditors pointed out that while tier-2 cities offer affordability, the lifestyle and amenities might differ from those in metropolitan areas like NCR or Bangalore. However, they noted that the quality of life in tier-2 cities has improved over the years, with better infrastructure and growing job opportunities.
• Adapting to a new environment might require some adjustment, but many found tier-2 cities to be pleasant and manageable, with a slower pace of life compared to bustling metros.

Expert Opinions:
Financial experts and real estate consultants echoed the Redditors’ advice, confirming that ₹1.25 crore can indeed cover both the purchase of a home and other living expenses in tier-2 cities. They emphasized the importance of researching specific areas and considering factors like job opportunities, infrastructure, and lifestyle preferences before making a decision.

Also Read: NCR – Affordable Housing Sales Share Dips to 24% in H1 2024, Luxury Up to 45%

Conclusion:
For NRIs contemplating a return to India with a budget of ₹1.25 crore, tier-2 cities in the Hindi belt present an attractive option. With affordable real estate and a lower cost of living, cities like Noida, Lucknow, Patna, Jamshedpur, and Raipur offer a practical alternative to the high expenses of metropolitan areas. While adjusting to life in these cities may involve some changes, many find the transition manageable and rewarding, making it a viable option for those looking to return to their roots.

The post NRI Asks: Is ₹1.25 Crore Enough to Settle in India? Reddit Responses Highlight Affordable Cities and Challenges appeared first on Square Feat India.