With increasing demand, rates increase by 94 percent in 4 years.
PropEquity study reveals.
The real estate sector is booming not only in major cities but also in tier-2 cities across the country. Housing prices in the top 30 tier-2 cities in India have doubled over the past four years. According to PropEquity, a real estate data analysis firm, housing prices in cities like Visakhapatnam, Vijayawada, Mysore, Nashik, Surat, Agra, Bhubaneswar, Ahmedabad, and others have increased by 94% between 2019-20 and 2023-24. The strong demand for housing in these cities is cited as the primary reason for this increase. The firm also noted that in these cities, the price growth for top10 properties ranges between 54-94%.
In Agra, housing prices have increased by a significant 94%, reaching Rs 7,163 per square feet by March 2024. Following Agra, Goa has seen a 90% increase, Ludhiana 89%, Indore 72%, Chandigarh 70%, Dehradun 68%, Ahmedabad 60%, and Bhubaneswar 58%. Mangalore’s prices have risen by 57%, and Thiruvananthapuram’s by 54%. However, Visakhapatnam experienced the smallest increase at 11% over the past four years, as revealed by PropEquity in its report.
According to Samir Jasuja, Founder and CEO of PropEquity, high demand has significantly driven up housing prices in tier-2 cities. He noted that over the past five years, purchases have outweighed new housing launches. Factors such as economic growth, improved connectivity, infrastructure development, and a positive job market have increased consumer confidence, leading to substantial price increases in these cities.
