The significant increase in sales value was primarily driven by rising input costs associated with real estate projects, including higher land prices, labour costs, and construction materials. Additionally, developers have increasingly focused on premium and luxury housing projects, contributing to the overall increase in transaction values.

PropEquity’s analysis also highlighted broader trends in 15 major tier-II cities across India. Total housing sales in these cities grew by 4 per cent in 2024, reaching 1,78,771 units, up from 1,71,903 units in the previous year. The value of these sales rose by 20 per cent, amounting to Rs 1.52 trillion in 2024, compared to Rs 1.27 trillion in 2023.

The study encompassed key tier-II cities such as Ahmedabad, Surat, Vadodara, Gandhinagar, Nashik, Jaipur, Nagpur, Bhubaneswar, Mohali, Visakhapatnam, Lucknow, Coimbatore, Goa, Bhopal, and Trivandrum. The data underscores the continued expansion of India’s real estate sector, fuelled by growing demand for high-end residential properties in both metropolitan and tier-II markets.

News source: Financial Express