Tier II Cities Drive Rs 2.44 Lakh Crore Residential Plot Market

2 min read     Updated on 24 Sept 2025, 04:17 PM
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Reviewed by
Jubin VergheseScanX News Team
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Overview

Tier II cities in India are driving residential plot development, contributing 52% of 4.7 lakh plots valued at Rs 2.44 lakh crore. Average prices increased by 27% to Rs 3,679 per square foot. Sonipat and Rohtak are leading growth centers, with infrastructure projects like KMP Expressway boosting demand. Millennials and NRIs show strong interest, while major developers are focusing on these areas. The market outlook is positive, with projected land appreciation of 40-60% over five years. Panipat, Karnal, and Panchkula are emerging as new hotspots for plot investments.

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*this image is generated using AI for illustrative purposes only.

In a significant shift in India's real estate landscape, Tier II cities have emerged as the powerhouse of residential plot development, according to a recent report by Prop Equity. The study reveals that these cities contributed a substantial 52% of the 4.7 lakh residential plots created, valued at an impressive Rs 2.44 lakh crore.

Market Dynamics and Price Trends

The report highlights a notable increase in property values, with weighted average prices surging by 27% to reach Rs 3,679 per square foot. This upward trend continued, with 45,591 new plots created in a subsequent period, underscoring the sector's robust growth.

Leading Growth Centers

Sonipat and Rohtak have taken center stage in this growth story, attracting both homeowners and investors. These cities are increasingly seen as attractive alternatives to densely populated metro areas, offering the appeal of low-density living.

Infrastructure Boost

The surge in demand for residential plots in Tier II cities is not coincidental. Major infrastructure projects are playing a pivotal role in driving this trend. Notable among these are:

  • KMP Expressway
  • Namo Bharat project

These developments have significantly enhanced connectivity and accessibility, making Tier II cities more attractive to potential buyers.

Buyer Demographics

The report indicates a growing interest among two key demographic groups:

  1. Millennials
  2. Non-Resident Indians (NRIs)

Both segments are showing a strong inclination towards investing in these emerging urban centers.

Developer Activity

Recognizing the potential of Tier II cities, major real estate developers are making significant inroads. Companies at the forefront of this trend include:

  • DLF
  • M3M
  • Godrej
  • Omaxe
  • Prestige

These developers are focusing on creating integrated townships and gated communities, catering to the evolving preferences of modern homebuyers.

Future Projections

The outlook for the residential plot market in Tier II cities remains highly positive. Prop Equity's report projects a substantial land appreciation of 40-60% over the next five years. This forecast underscores the long-term investment potential of these areas.

Emerging Hotspots

While Sonipat and Rohtak lead the pack, other Tier II cities are not far behind. The report identifies increased plot development activity in:

  • Panipat
  • Karnal
  • Panchkula

These cities are poised to become the next focal points for residential plot investments.

Market Overview

To provide a clearer picture of the market dynamics, here's a summary of the key figures:

Metric Value
Total Residential Plots Created 4.7 lakh
Total Market Value Rs 2.44 lakh crore
Tier II Cities' Contribution 52%
Average Price per sq ft Rs 3,679
Price Increase 27%
New Plots Created 45,591
Projected Land Appreciation (Next 5 years) 40-60%

This data underscores the significant role Tier II cities are playing in shaping India's residential real estate market, offering promising opportunities for both homeowners and investors alike.

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Housing Sales in India's Top 9 Cities Projected to Dip 4% in Q3, Mumbai and Pune Lead Decline

2 min read     Updated on 21 Sept 2025, 01:45 PM
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Reviewed by
Shriram ShekharScanX News Team
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Overview

PropEquity projects a 4% year-on-year decline in housing sales across India's top 9 cities for Q3. Overall sales are expected to decrease from 105,081 to 100,370 units. Thane and Pune face the steepest declines at 28% and 16% respectively. However, Bengaluru and Kolkata show growth with 21% and 25% increases projected. The Mumbai region and Pune experience the most significant drops, while cities like Chennai, Hyderabad, and Delhi-NCR show modest growth. Despite the sales dip, new residential property supply is expected to remain stable with over 92,000 new units anticipated.

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*this image is generated using AI for illustrative purposes only.

The Indian real estate market is bracing for a slight downturn in the third quarter, according to recent projections by PropEquity. The report indicates a 4% year-on-year decline in housing sales across India's top 9 cities, with the Mumbai region and Pune experiencing the most significant drops.

Key Highlights

  • Overall housing sales expected to decrease from 105,081 units to 100,370 units
  • Thane and Pune face the steepest declines at 28% and 16% respectively
  • Bengaluru and Kolkata show promising growth, with 21% and 25% increases projected

Regional Breakdown

The PropEquity report provides a detailed city-wise analysis of the projected housing sales:

City Projected Sales (Units) Year-on-Year Change
Thane 14,877 -28%
Pune 17,762 -16%
Mumbai 9,691 -8%
Navi Mumbai 7,212 -6%
Bengaluru 16,840 +21%
Kolkata 4,732 +25%
Chennai 5,406 +16%
Hyderabad 12,860 +4%
Delhi-NCR 10,990 +4%

Market Dynamics

The projected decline is primarily attributed to lower demand in the Mumbai region and Pune. Thane is expected to witness the most significant drop, with sales falling by 28% to 14,877 units. Pune follows with a 16% decline to 17,762 units. Mumbai and Navi Mumbai are also anticipated to see decreases of 8% and 6%, respectively.

However, the picture is not uniformly gloomy across all major cities. Several metropolitan areas are projected to experience growth:

  • Bengaluru leads with an expected 21% increase to 16,840 units
  • Kolkata shows strong growth potential with a 25% rise to 4,732 units
  • Chennai is projected to grow by 16% to 5,406 units
  • Hyderabad and Delhi-NCR both anticipate modest 4% increases

Seasonal Factors

The report notes that the July-September period is typically considered a weak quarter for real estate sales. This is largely due to the monsoon season and the observance of Shraadh, a period considered inauspicious for new beginnings in Hindu tradition.

Supply Outlook

Despite the projected dip in sales, the supply of new residential properties is expected to remain stable. The report suggests that over 92,000 new units will be introduced to the market, indicating that developers remain optimistic about long-term demand.

This projected stability in new supply, coupled with varied regional performance, suggests a complex and nuanced real estate landscape across India's major urban centers. While some cities face challenges, others are showing resilience and even growth, pointing to the diverse nature of India's housing market.

As the real estate sector navigates through these regional variations and seasonal factors, stakeholders will be keenly watching how these projections play out in the coming months.

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