Tier-II City Home Sales Decline: A Closer Look at the Trends

PropEquity reports a 13% drop in housing sales across 30 major tier-II cities during July-September 2024. New launches decreased by 34%, with the west zone dominating sales. Experts suggest the dip reflects a market recalibration after record highs in 2023, albeit the sector remains resilient.

In a recent report by PropEquity, housing sales across 30 major tier-II cities in India saw a notable decline of 13% during the July-September period of 2024. The drop is attributed to a higher base effect from the previous year alongside a stark reduction in new supply, which fell by 34%.

West zone cities, including Ahmedabad and Nagpur, continued to contribute significantly to total sales, accounting for 72%. PropEquity CEO Samir Jasuja explains that last year's historic highs impacted this year's figures. Despite the decline, PropEquity highlights the region's continued demand due to advantageous living costs and infrastructure.

Experts remain optimistic about the market's resilience. Shashank Vashishtha of Exp Realty India sees this as a recalibration opportunity for sustainable and affordable growth. Rochak Bakshi from True North Financial Services, however, cautions investors about the risks in tier-II cities, citing low rental yields and poor capital appreciation.

(With inputs from agencies.)