Key data
- Housing sales value across 15 major Tier II Indian cities rose by 4% year-on-year in the July–September quarter to more than ₹37,000 crore.
- At the same time, the number of units sold in these cities declined by about 4% to 39,201 units in the same quarter.
- New residential supply in these markets fell by around 10% year-on-year to 28,721 units in the third quarter of 2025.
List of 15 Tier II cities
These 15 Tier II cities covered in the analysis are:
- Ahmedabad
- Surat
- Gandhi Nagar
- Vadodara
- Jaipur
- Nashik
- Nagpur
- Mohali
- Bhubaneshwar
- Lucknow
- Bhopal
- Coimbatore
- Goa
- Trivandrum
- Kochi
Performance of major markets
- Ahmedabad is the largest property market among these Tier II cities, where housing sales dropped by about 6% year-on-year to 13,021 units in the July–September quarter.
- In Surat, housing sales declined by roughly 8% to 4,936 units during the same period.
- Overall, the four Gujarat cities — Ahmedabad, Surat, Gandhi Nagar and Vadodara — together account for more than 60% of both new launches and sales among the 15 Tier II cities.
Expert views and demand drivers
“Tier 2 cities remain the key engines of India's growth story. Expanding employment opportunities, improving infrastructure, and stronger connectivity continue to drive sustained demand across residential, commercial, and retail real estate.”
The four Gujarat cities “continue to demonstrate strong housing demand driven by robust economic growth, manufacturing strength, rising white-collar employment of migratory and local population and rapid infrastructure upgrades.”
Industry executives also highlight that:
- Demand in Tier II cities remains resilient despite a fall in transaction volumes.
- Homebuyers are increasingly preferring newly launched projects in these locations.
Summary insight
In Q3 2025, India’s 15 key Tier II cities showed resilient housing demand with a 4% rise in value despite lower volumes, led by Gujarat hubs and supported by jobs growth, infrastructure and better connectivity.
More News
- Updated UFC Light Heavyweight Rankings: Where Does Blachowicz Land After UFC 323 Draw?
- VectorStock Announces Single-License Model
- Créon : un boulanger remporte le concours de la meilleure baguette de tradition de la Gironde
- A 180-Year Assumption About Light Was Just Proven Wrong
- Nigeria's New Multi-Tier Electricity Market
- Home Contemporain: Magasin de meubles à Strasbourg
- Fini le sapin qui perd ses épines : Zara Home dévoile un modèle en lin qui s’illumine
- Aaru hits $1B valuation with multi-tier Series A funding
- Home and Away star Dan Ewing cosies up to rumoured new girlfriend after split from fiancée and Katrina Risteska
- Future uncertain for hundreds of vulnerable people amid group home closure fears