The weighted average price of new launch projects in the top 30 Tier II cities increased by up to 65 per cent between 2023 and October 2024, according to a report by NSE-listed data analytics firm PropEquity. The report highlights that 26 cities experienced a rise in prices, while four cities saw a decline during this period.
In North India, Jaipur recorded the highest rise in the weighted average price of new launch projects at 65 per cent, increasing from Rs 4,240 per sq. ft. to Rs 6,979 per sq. ft. between 2023 and October 2024. This was followed by Indore, which saw a 20 per cent increase, and Dehradun with a 14 per cent rise.
Conversely, Sonepat experienced the sharpest price fall, declining by 26 per cent, followed by Mohali (8 per cent) and Bhopal (5 per cent). While cities like Agra, Chandigarh, and Bhiwadi witnessed significant growth in prices—59 per cent, 34 per cent, and 25 per cent, respectively—the number of new launches in these cities remained limited, with only 3-5 projects during this period.
Samir Jasuja, Founder & CEO of PropEquity, commented, “The cheap availability of land in these cities, followed by the massive development of connectivity infrastructure and strong demand, has 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 driving the next phase of India’s growth story.”
In Southern India, Guntur recorded a 51 per cent increase in the weighted average price of new launch projects, reaching Rs 5,169 per sq. ft. between 2023 and October 2024. Mangalore followed with a 41 per cent rise, and Visakhapatnam saw a 29 per cent increase. However, Mysore and Trivandrum witnessed declines in prices, falling by 14 per cent and 4 per cent, respectively.
In Western India, Gandhi Nagar saw prices rise by 19 per cent to Rs 4,844 per sq. ft., followed by Surat (14 per cent) and Nagpur (12 per cent).
In Eastern India, Bhubaneswar recorded a 15 per cent increase in the weighted average price of new launch projects, reaching Rs 7,731 per sq. ft., while Raipur saw a 14 per cent rise to Rs 3,810 per sq. ft.
Goa is the only city among the 30 Tier II cities to have surpassed the Rs 10,000 per sq. ft. threshold for weighted average launch prices. Meanwhile, cities such as Vijayawada, Gandhi Nagar, Surat, Vadodara, Ahmedabad, and Raipur continue to have prices below the Rs 5,000 per sq. ft. mark.