Housing Sales In Top 15 Tier-2 Cities Dip 4% In Q3 2025; Launches Down 10%: Report

Housing sales in India’s top 15 tier-2 cities declined 4 per cent year-on-year to 39,201 units in the July-September quarter of 2025, even as the overall sales value rose 4 per cent to Rs 37,409 crore,

suggesting a shift toward premium and higher-value homes, according to the latest report by NSE-listed real estate analytics firm PropEquity.

New launches slipped sharply by 10 per cent YoY to 28,721 units in the same period, reflecting continued weakness in the affordable and mid-income housing segments.

According to PropEquity, eight of the 15 tracked cities recorded a year-on-year fall in sales, with Bhubaneshwar registering the steepest drop at 26 per cent. At the other end, Trivandrum posted the strongest sales growth at 19 percent in Q3 2025.

The contraction was sharper on the supply side, where eight cities saw a decline in project launches. Bhubaneshwar once again witnessed the biggest fall, with new launches tumbling 88 per cent during the quarter.

In absolute numbers, Ahmedabad remained the strongest tier-2 market, leading both sales and launches in Q3.

Location	Q3-2024	Q2-2025	Q3-2025	Q-o-Q Change	Y-o-Y Change
Ahmedabad	13782	13461	13021	-3%	-6%
Surat	5347	5046	4936	-2%	-8%
Gandhi Nagar	3294	3815	3496	-8%	6%
Vadodara	4200	3568	3349	-6%	-20%
Jaipur	2272	2369	2627	11%	16%
Nashik	2663	2787	2500	-10%	-6%
Nagpur	1754	1564	1690	8%	-4%
Mohali	1243	1359	1471	8%	18%
Bhubaneshwar	1508	1418	1119	-21%	-26%
Lucknow	864	1038	991	-5%	15%
Bhopal	907	976	959	-2%	6%
Coimbatore	1024	988	910	-8%	-11%
Goa	876	828	881	6%	1%
Trivandrum	560	553	664	20%	19%
Kochi	736	561	587	5%	-20%
Top 15 Tier 2 Cities	41030	40331	39201	-3%	-4%

PropEquity founder and CEO Samir Jasuja said the sector is seeing demand shift away from traditionally high-volume segments. “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,” he said.

At the same time, Jasuja noted that smaller cities continue to hold long-term promise. “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,” he added.

On a quarter-on-quarter basis, housing sales dropped 3 per cent, sales value dipped 1 per cent, and new launches saw a steep 26 percent contraction.

Region-wise performance was mixed. Western India, which includes Ahmedabad, Surat, Gandhinagar, Vadodara, Nashik, Nagpur and Goa, saw a 6 per cent yearly and 4 per cent quarterly decline in sales, though it continued to dominate overall activity with 76 per cent of all sales in Q3.

Location	Q3-2024	Q2-2025	Q3-2025	Q-o-Q Change	Y-o-Y Change
Ahmedabad	11384	11398	11471	1%	1%
Vadodara	2803	1814	2635	45%	-6%
Surat	3785	5437	2507	-54%	-34%
Jaipur	1393	3019	2311	-23%	66%
Gandhi Nagar	2522	4163	2171	-48%	-14%
Nashik	1100	1609	1709	6%	55%
Bhopal	515	1114	1148	3%	123%
Nagpur	1670	1855	1087	-41%	-35%
Trivandrum	120	736	780	6%	550%
Goa	592	887	728	-18%	23%
Kochi	544	556	626	13%	15%
Mohali	1799	3488	604	-83%	-66%
Coimbatore	1431	1099	526	-52%	-63%

Northern India, comprising Lucknow, Mohali and Jaipur, stood out with a 16 per cent YoY and 7 per cent QoQ rise in sales. Southern India — Coimbatore, Trivandrum and Kochi — recorded a 7 per cent annual decline but a 3 per cent sequential rise. Central and Eastern India, represented by Bhopal and Bhubaneshwar, saw sales fall 14 per cent YoY and 13 per cent QoQ.

The data underscores a clear divergence within tier-2 markets, where premiumisation is driving value growth even as overall transaction volumes soften.