Housing sales across India’s top 15 Tier-II cities declined 10% year-on-year in 2025 to 1,56,181 units, even as total sales value remained flat at ₹1.48 trillion, according to a report by Prop Equity. The drop in volumes reflects rising property prices and a growing shift towards premium housing.
Sales of homes priced below ₹1 crore fell 15%, reducing their share to 72% from 77% a year ago. In contrast, homes priced above ₹1 crore saw a 9% rise in sales, with their share increasing to 28%. The report highlighted that shrinking supply in the affordable segment, coupled with higher land and construction costs, has pushed new launches into higher price brackets.
Except for Mohali and Lucknow, which recorded growth, most cities saw sales decline, with Visakhapatnam reporting the steepest fall. New housing supply also dropped 6% to 1,36,243 units, with only four cities — Mohali, Bhopal, Ahmedabad and Jaipur — posting growth in launches.
Prop Equity noted that affordability pressures may increasingly weigh on demand, as Tier-II markets begin to mirror Tier-I cities in terms of rising prices and slowing absorption.
Tier-II Housing Demand Slows; Sales Down 10%, Launches Fall 6%
