Huge Increase in Property Prices
Residential property prices in India’s top 10 Tier II cities have jumped by up to 94% over the past five years. This is due to growing consumer confidence, more jobs, and better infrastructure, according to PropEquity.
Key Cities with Highest Price Rises
Cities like Agra, Goa, and Indore have seen the most significant increases in property prices. PropEquity’s data shows that prices have gone up by 54% to 94% in the top 10 Tier II cities from 2020 to 2024. Agra saw the highest increase at 94%.
Overall Price Trends in Tier 2 Cities
In the last five years, 24 out of 30 Tier II cities experienced double-digit price increases. The other six cities saw single-digit rises. Goa’s property prices rose by 90%, Mangalore by 56%, and Indore by 72%.
Why Prices Are Rising
According to Samir Jasuja, CEO of PropEquity, the main reasons for the price hikes are high demand, economic growth, better connectivity, and job opportunities. These factors have boosted consumer confidence, leading to higher property prices.
Benefits of Living in Tier 2 Cities
Tier 2 cities are attractive because they offer a lower cost of living compared to Tier 1 cities. This affordability makes them appealing to homebuyers. Better connectivity and infrastructure also bring essential amenities like schools and hospitals closer, making these cities ideal for families and young professionals.
PropEquity’s Data Collection
PropEquity gathers real estate data for RERA-approved projects in 44 Indian cities, including 14 Tier I cities and 30 Tier II cities.
List of Tier 2 Cities
The 30 Tier II cities include Amritsar, Mohali, Ludhiana, Chandigarh, Panipat, Dehradun, Bhiwadi, Sonepat, Jaipur, Agra, Lucknow, Bhopal, Indore, Visakhapatnam, Vijayawada, Guntur, Goa, Mangalore, Mysore, Coimbatore, Kochi, Trivandrum, Raipur, Bhubaneswar, Ahmedabad, Gandhi Nagar, Vadodara, Surat, Nashik, and Nagpur.
Conclusion
The significant rise in residential property prices in India’s Tier II cities highlights the growing appeal of these areas. With increased consumer confidence, better job opportunities, and improved infrastructure, these cities offer an attractive alternative to the more expensive Tier I cities, making them a popular choice for homebuyers.