Jaipur saw the highest rise in weighted average price of newly launched projects at 65 percent from Rs 4,240 per sqft to Rs 6,979 per sqft in last one year

The weighted average price of newly launched residential projects in top 30 Tier-II cities surged up to 65 percent in the one year to October 2024.

According to NSE-listed data analytics firm PropEquity, in North India, Jaipur saw the highest rise in weighted average price of newly launched projects at 65 percent from Rs 4,240 per square feet (sqft) to Rs 6,979 per sqft in the last one year. This was followed by Indore at 20 percent and Dehradun at 14 percent.

Though Agra, Chandigarh and Bhiwadi saw 59 percent, 34 percent and 25 percent growth in prices, respectively, the new launches in these cities were very few at 3-5 projects during this period.

In Eastern India, Bhubaneshwar saw the weighted average price of new projects rise 15 percent to Rs 7,731 per sqft between 2023 and October 2024 and Raipur by 14 percent to Rs 3,810 per sqft. Data showed that Raipur remained the most affordable Tier-II city with prices settling below Rs 4,000 per sqft mark.

Data showed that in South India, Guntur saw the weighted average price of newly launched projects rise 51 percent to Rs 5,169 per sqft in last one year, followed by Mangalore at 41 percent, and Visakhapatnam at 29 percent.

Samir Jasuja, founder and chief executive of PropEquity, said that Tier-II cities have seen renewed interest from developers, corporates, financial institutions and investor community.

The availability of land at cheaper prices in these cities followed by massive development of connectivity infrastructure and strong demand have led to increased supply of premium and luxury housing from not just incumbent developers but new entrants cashing in on the potential of these cities as growth centres and employment hubs. Cities like Gandhinagar, Bhubaneshwar, Jaipur and Guntur have seen prices rise 15-65 percent in the last one year,” he said.

In Western India, Gandhinagar saw the weighted average price of new projects rise by 19 percent to Rs 4,844 per sqft between 2023 and October 2024, followed by Surat at 14 percent and Nagpur at 12 percent.

Data also showed that while 25 cities saw a rise in prices, five cities recorded a decline. Sonepat at 26 percent witnessed the highest fall in prices, followed by Mohali at 8 percent and Bhopal at 5 percent. In South India, Mysore and Trivandrum witnessed a fall in prices at 14 percent and 4 percent.

Data also showed that Goa is the only city among 30 Tier-II cities that have seen the weighted average launch price cross the Rs 10,000 per sqft threshold. Prices in cities like Vijayawada, Gandhinagar, Surat, Vadodara, Ahmedabad and Raipur continue to stay below the Rs 5,000 per sqft mark.

Vijay Harsh Jha, founder and chief executive of property brokerage firm VS Realtors, said that the property market in Tier-II cities again sees some spike in interest from all stakeholders, including from property seekers in top cities.

“As housing demand in India's top cities saturate, demand is shifting to these cities owing to the fact that mobility has improved tremendously over the past couple of years, thereby making it convenient to travel for work and within the city perimeter,” he said.