Mumbai, Maharashtra, 14th of February, 2026 : With housing sales value remaining flat at ₹1.48 lakh crore across the top 15 tier-2 cities in 2025, sales volumes declined 10% YoY to 1,56,181 units, reflecting rising housing prices and increasing premiumisation, according to NSE-listed real estate data analytics firm PropEquity.
Except for Mohali and Lucknow, which saw growth in sales volume of 34% and 6% YoY respectively, the other 13 cities saw a decline up to 38% with Visakhapatnam witnessing the maximum fall.
The report further added the growing shift towards high-ticket housing can be ascertained from the fact that homes priced under Rs 1 crore saw 15% YoY decline in volumes in 2025 with its share dipping to 72% from 77% in 2024. Similarly, homes priced above ₹1 crore witnessed 9% growth in sales with its share rising to 28% from 23% in 2024.
Going forward, beginning 2026, Ahmedabad can be regarded as a tier-1 city, having surpassed several established tier-1 markets in both housing launches and absorption. With its scale of development and depth of demand, the city now rightfully merits inclusion among India’s tier-1 urban centres.
In absolute terms, the four cities of Gujarat, namely Ahmedabad, Gandhi Nagar, Vadodara and Surat, together accounted for 63% of the total sales in top 15 tier 2 cities, with Ahmedabad alone contributing 33% with 51,148 units sold.
| Total Absorption (No. of units) | |||
| Location | 2024 | 2025 | % Change |
| Ahmedabad | 55315 | 51148 | -8% |
| Surat | 23342 | 19835 | -15% |
| Vadodara | 17045 | 13798 | -19% |
| Gandhi Nagar | 13884 | 13710 | -1% |
| Nashik | 12492 | 11188 | -10% |
| Jaipur | 10271 | 9758 | -5% |
| Nagpur | 7653 | 6260 | -18% |
| Mohali | 4554 | 6118 | 34% |
| Bhubaneshwar | 6538 | 4885 | -25% |
| Lucknow | 3812 | 4053 | 6% |
| Coimbatore | 3854 | 3702 | -4% |
| Bhopal | 3804 | 3599 | -5% |
| Goa | 3518 | 3507 | 0% |
| Visakhapatnam | 3858 | 2406 | -38% |
| Kochi | 2659 | 2214 | -17% |
| Top 15 tier 2 cities | 172599 | 156181 | -10% |
Samir Jasuja, Founder & CEO of PropEquity, said, “The slowdown in housing sales over the past two years is largely due to a shrinking supply of homes priced below ₹1 crore-a segment that has traditionally driven demand in tier-2 cities. Rising land and construction costs, along with changing buyer aspirations, are pushing new launches into higher price brackets. As a result, tier-2 markets are increasingly mirroring tier-1 cities, where volumes are declining even as prices continue to rise.”
Jasuja added, Government focus on tier-2 cities—through enhanced urban development, improved connectivity, and the creation of industrial corridors and manufacturing hubs-has driven sustained price appreciation. This has pushed even average housing units in many tier-2 markets beyond the ₹1 crore mark, leading to slower absorption. Going forward, this trend could be a cause for concern, as affordability pressures begin to impact not just premium segments but also affordable and mid-income housing in these cities.
| New Supply (No. of units) | |||
| Location | 2024 | 2025 | % Change |
| Ahmedabad | 47344 | 48646 | 3% |
| Surat | 19905 | 17256 | -13% |
| Gandhi Nagar | 14712 | 12829 | -13% |
| Jaipur | 8665 | 8803 | 2% |
| Mohali | 4128 | 8606 | 108% |
| Vadodara | 11104 | 8367 | -25% |
| Nashik | 8540 | 8222 | -4% |
| Nagpur | 6121 | 5485 | -10% |
| Bhopal | 1999 | 3312 | 66% |
| Coimbatore | 3681 | 3251 | -12% |
| Lucknow | 5076 | 2884 | -43% |
| Bhubaneshwar | 6674 | 2840 | -57% |
| Goa | 2799 | 2749 | -2% |
| Visakhapatnam | 2455 | 1155 | -53% |
| Kochi | 1936 | 1838 | -5% |
| Top 15 tier 2 cities | 145139 | 136243 | -6% |
New supply across the top 15 tier-2 cities declined by 6% to 1,36,243 units in 2025, down from 1,45,139 units in 2024. The contraction was seen across price segments, with supply of homes priced under ₹1 crore declining by 5%, and those above ₹1 crore falling by 8%.
Mohali (108%), Bhopal (66%), Ahmedabad (3%) and Jaipur (2%) saw growth in new launches while the other 11 cities saw a decline of up to 57% with Bhubaneshwar witnessing the steepest decline.
The four cities of Gujarat accounted for 64% of the total launches in 2025.
About P.E Analytics Ltd (PropEquity)
PropEquity (NSE-listed) is India’s largest real estate data and analytics company, tracking more than 180,000 projects by 60,000+ developers across 50+ cities. Its subscription-based platform delivers unparalleled depth, accuracy, and real-time insights into India’s real estate market. Built over 18 years, PropEquity’s client base includes 300+ institutional investors, comprising banks, NBFCs, private equity funds, and leading developers, and the organisation remains committed to innovation, transparency, and data-driven transformation.
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