Housing sales in India’s top 15 tier-2 cities fell by 4% YoY to 39,201 units in Q3 2025, even as the sales value rose by 4% to ₹37,409 crore, indicating a gradual shift towards premium homes, according to a report by PropEquity, a real estate data analytics firm.
According to the report, the new supply declined 10% YoY to 28,721 units in the third quarter ending September 2025.
The report said that eight out of the Top 15 tier-2 cities reported YoY decline in housing sales, with Bhubaneshwar witnessing the maximum decline at 26%. Other cities that reported a fall in sales include Ahmedabad, Surat, Vadodara, Nashik, Nagpur, Coimbatore, and Kochi.
Trivandrum saw the maximum rise in sales at 19% in Q3 2025. Furthermore, cities such as Gandhinagar, Jaipur, Mohali, Lucknow, Bhopal, and Goa reported a rise in sales.
In volume terms, Ahmedabad remained the top market in both sales and launches in Q3 2025, according to the report.
“There has been a steady decline in new housing launches, especially in the high-volume affordable and mid-income segments. With rising input costs and evolving consumer aspirations pushing up home prices and home sizes, sales momentum in these markets has begun to moderate,” Samir Jasuja, Founder and CEO, PropEquity, said.
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“That said, Tier 2 cities remain the key engines of India’s growth story. Expanding employment opportunities, improving infrastructure, and stronger connectivity continue to drive sustained demand across residential, commercial, and retail real estate,” Jasuja said.
Quarter-on-quarter scenario
The report said that on a QoQ basis, housing sales fell by 3%, sales value by 1% and launches by 26% in Q3 2025.
Region-wise data
According to the data, western India, comprising Ahmedabad, Surat, Gandhi Nagar, Vadodara, Nashik, Nagpur and Goa, saw 6% YoY and 4% QoQ decline in sales in Q3 2025. The western region accounted for 76% of the total sales.
On the other hand, Northern India, comprising Lucknow, Mohali and Jaipur, saw a 16% YoY and 7% QoQ rise in sales in Q3 2025. Southern India, comprising Coimbatore, Trivandrum, and Kochi, saw 7% YoY decline and 3% QoQ rise in sales in Q3 2025.
Central and Eastern India, comprising Bhopal and Bhubaneshwar, saw a 14% YoY and 13% QoQ decline in sales in Q3 2025, the report said.