Real estate prices in Tier 2 cities: Jaipur records highest growth in property prices at 65%

Jaipur records highest growth in property prices at 65% followed by Guntur at 51%. Goa only city to cross the ₹10,000 per sq ft mark, according to PropEquity

The weighted price of new launch projects in the top 30 tier II cities increased by up to 65% between 2023 and October 2024. While 26 cities saw prices rise, four cities witnessed a decline, according to a report by NSE-listed data analytics firm PropEquity.

Jaipur saw the highest rise in weighted average price of new launch projects at 65% from ₹4240 per sq. ft. to ₹6979 per sq. ft. between 2023-October 2024. (Representational photo)(Unsplash)

In North India, Jaipur saw the highest rise in the weighted average price of new launch projects, at 65%, from ₹4240 per sq. ft. to ₹6979 per sq. ft. between 2023 and October 2024. This was followed by Indore (20%) and Dehradun (14%). Sonepat, at 26%, witnessed the highest price fall, followed by Mohali (8%) and Bhopal (5%).

While Agra, Chandigarh and Bhiwadi saw 59%, 34% and 25% growth in prices, respectively, the new launches in these cities were very few (between 3-5 projects) during this period.

According to the report, housing prices fell by up to 26% in cities like Bhopal, Mohali, Sonepat, Trivandrum, and Mysore.

Price rise in Tier 2 cities in the Southern and Western regions

In Southern India, Guntur saw the weighted average price of new launch projects rise by 51% to ₹5169 per sq. ft. between 2023 and October 2024, followed by Mangalore (41%), Visakhapatnam (29%). Mysore and Trivandrum witnessed a price fall of 14% and 4%, respectively.

In North India, Jaipur saw the highest rise in the weighted average price of new launch projects, at 65%, from ₹4240 per sq. ft. to ₹6979 per sq. ft. between 2023 and October 2024

In Western India, Gandhi Nagar saw the weighted average price of new launch projects rise by 19% to ₹4844 per sq ft between 2023 and October 2024, followed by Surat (14%) and Nagpur (12%).

In Eastern India, between 2023 and October 2024, Bhubaneshwar saw the weighted average price of new launch projects rise by 15% to ₹7731 per sq ft, and Raipur by 14% to ₹3810 per sq ft.

Average launch prices in Goa and Surat

Goa is the only city among 30 tier II cities where the weighted average launch price has crossed the ₹10,000 per sq. ft. threshold.

Prices in cities like Vijayawada, Gandhi Nagar, Surat, Vadodara, Ahmedabad and Raipur remain below the ₹5000 per sq. ft. mark.

PropEquity captures real estate data for RERA-approved projects in 44 Indian Cities, including 14 Tier I cities and 30 Tier II Cities. These include Amritsar, Mohali, Ludhiana, Chandigarh, Panipat, Dehradun, Bhiwadi, Sonepat, Jaipur, Agra, Lucknow, Bhopal, Indore, Visakhapatnam, Vijayawada, Guntur, Goa, Mangalore, Mysore, Coimbatore, Kochi, Trivandrum, Raipur, Bhubaneshwar, Ahmedabad, Gandhi Nagar, Vadodara, Surat, Nashik and Nagpur.

“Tier II cities have seen renewed interest from developers, corporates, financial institutions and the investor community. The cheap availability of land in these cities followed by infrastructure development and strong demand have led to increased supply of premium and luxury housing from not just incumbent developers but also new entrants," said Samir Jasuja, founder and CEO, PropEquity.