Coimbatore, Lucknow Buck Sales Slump as Tier-2 Cities Focus on High-Value Homes

The January–March 2025 quarter saw a decline in the number of homes sold across India’s top 15 tier-2 cities, even as the total value of these transactions rose by 6% year-on-year. According to PropEquity data, housing sales in these cities dropped by 8%, down to 43,781 units from 47,378 in Q1 2024. However, the overall value climbed from ₹38,102 crore to ₹40,443 crore.

Lucknow, Coimbatore, and Gandhi Nagar Lead the Pack

Lucknow emerged as the fastest-growing market in terms of volume, recording a 25% rise in units sold, amounting to 1,301 homes in Q1. It was followed by Coimbatore with 21% growth, Gandhi Nagar at 18%, and Mohali with a marginal 2% increase. Despite these gains, most cities witnessed a downturn in unit sales.

Visakhapatnam Records Sharpest Drop in Sales

Eleven of the 15 cities saw negative growth in unit sales, with Visakhapatnam posting the steepest decline at 37%. Ahmedabad and Goa recorded the lowest decline at just 1% each, indicating relatively stable market demand in those regions.

Value Growth Outpaces Volume in Many Cities

While fewer homes were sold, several cities registered robust growth in transaction value. Coimbatore topped the list with a 52% increase in sales value, touching ₹1,120 crore. It was followed by Lucknow (48%), Gandhi Nagar (36%), Mohali and Goa (17% each), Ahmedabad and Bhubaneshwar (7% each), and Kochi (5%).

Tier-2 State Capitals Perform Better Than Others

The six state capitals among the top 15 cities—Gandhi Nagar, Jaipur, Bhubaneshwar, Lucknow, Goa, and Bhopal—together reported a 5% decline in unit sales but saw a 17% jump in overall value. These six accounted for a quarter of all sales and 30% of the sales value during the quarter, suggesting a shift in buyer focus toward quality over quantity.

Expert View: Infrastructure Driving Investment

Yashank Wason, Managing Director of Royal Green Realty, noted that improving infrastructure, smart city upgrades, and favourable government policies are making cities like Indore, Sonipat, and Rohtak increasingly attractive to homebuyers and investors. These factors are helping these locations stand out as affordable and future-ready real estate destinations.

Sales Value Declines in Select Markets

On the downside, seven cities recorded a decline in sales value. Visakhapatnam led this trend with a 35% drop, while Vadodara and Nagpur experienced the smallest decline of 1% each, indicating market corrections or reduced ticket sizes in those locations.

News Disclaimer: This article is based on data and quotes sourced from market analysts and official real estate intelligence platforms. Readers are advised to independently verify investment decisions and consult certified professionals for legal or financial advice.