RISE in housing demand is not restricted to major cities as sales of residential properties rose11percentlastfiscalacross 30 Tier II towns to nearly 2.08 lakh units, according to PropEquity. Realestatedataanalyticfirm PropEquity on Friday released a report on TierII cities' housing market. The data showed that housing sales increased 11 per cent to 2,07,896 units in 2023-24 as against 1,86,951 units in the preceding financial year. Top 10 Tier II cities -- Ahmedabad, Vadodara, Surat, Nashik, Gandhi Nagar, Jaipur, Nagpur, Bhubaneshwar, Visakhapatnam and Mohali-- contributed 80 per cent to the total sales in 30 small towns.

 

These 10 cities together clocked sales of 1,68,998 residential units in 2023-24, up 11 per cent from 1,51,706 homes in 2022-23. The other 20TierII cities are Bhopal, Lucknow, Goa, Coimbatore, Raipur, Vijayawada, Indore, Kochi, Trivandrum, Mangalore, Guntur, Bhiwadi, Dehradun, Ludhiana, Chandigarh, Agra, Mysore, Sonepat, Panipat and Amritsar. Samir Jasuja, Founder and Managing Director at PropEquity said, “Tier II cities performed better than Tier I cities due to lower property prices and growth potential.” Affordability is enabling the dreamofowningahomeareality for a growing middle class in these smaller cities, he added. “These cities are also experiencingeconomicboomsdue to the setting up of small and medium enterprises (SME) businesses and industries. Government push on infrastructure creation is another majorreasonforrisingdemand in Tier II cities,” Jasuja said. PropEquity,whichislistedon the stock exchanges, data showed that the West zone accounted for nearly 70 per cent ofthe total sales in30Tier II cities.