The weighted average price of new launch real estate projects in India’s Tier 2 cities has risen significantly, with Jaipur recording the highest growth at 65%, according to a report by PropEquity, a data analytics firm. The analysis, covering 30 Tier 2 cities, highlighted that 26 cities experienced price increases, while four saw declines between 2023 and October 2024.

Key price trends:

North India: Jaipur saw a surge in weighted average prices from Rs 4,240 to Rs 6,979 per sq. ft. (65%). Indore followed with a 20% increase, while Dehradun registered a 14% rise. However, Sonepat recorded the steepest decline at 26%, with Mohali and Bhopal seeing decreases of 8% and 5%, respectively.

South India: Guntur experienced a notable 51% price rise to Rs 5,169 per sq. ft., followed by Mangalore (41%) and Visakhapatnam (29%). In contrast, Mysore and Trivandrum saw prices drop by 14% and 4%, respectively.

West India: Gandhi Nagar led the price growth with a 19% rise to Rs 4,844 per sq. ft., followed by Surat (14%) and Nagpur (12%).

East India: Bhubaneswar reported a 15% price increase to Rs 7,731 per sq. ft., while Raipur saw a 14% rise to Rs 3,810 per sq. ft.

Goa stood out as the only Tier 2 city where weighted average launch prices exceeded Rs 10,000 per sq. ft. Meanwhile, cities like Surat, Gandhi Nagar, and Raipur remained under Rs 5,000 per sq. ft., maintaining affordability for buyers.

PropEquity’s CEO, Samir Jasuja, attributed the rising prices to renewed interest from developers and investors, driven by affordable land, infrastructure upgrades, and strong housing demand. These factors have spurred increased launches of premium and luxury housing projects by both established developers and new entrants.

This growth reflects Tier 2 cities’ increasing appeal as real estate hubs, offering opportunities for both buyers and investors.

(Hindustan Times)