Top 30 Tier II Cities See up to 65% Surge in Housing Prices, Jaipur Takes The Lead

According to NSE-listed data analytics firm PropEquity, the weighted average price of the newly launched residential projects in top 30 Tier-II cities surged up to 65 percent in the one year to October 2024. 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, followed by Indore at 20 percent and Dehradun at 14 percent.

With very few new launches around 3-5 projects in cities like Agra, Chandigarh and Bhiwadi saw 59 percent, 34 percent and 25 percent growth in prices, respectively.

Bhubaneshwar, in Eastern India, 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.

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.

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, in Western India.

While data showed that there was a consistent rise in prices in 25 cities, five cities recorded a decline too. 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.

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

Source: Moneycontrol