New Delhi, 13th June 2024: Housing.com, India’s leading full-stack proptech company, has released its inaugural “The Bharat in India” report today. The report unveils remarkable growth trends in Tier-2 city real estate markets across the country. It highlights how these once overlooked urban centres are rapidly closing the gap with their Tier-1 counterparts. This growth is fuelled by economic diversification, rising consumer demand, and reverse migration patterns accelerated by the pandemic.
Dhruv Agarwala, Group CEO of Housing.com said, “The real estate narrative of India is evolving rapidly, with Tier-2 cities like Kochi, Jaipur, Goa, and Chandigarh Tri-city emerging as new growth powerhouses. Our proprietary Property Buy Index reveals Tier-2 cities surpassing the top eight metros by a staggering 88 points, underscoring their increasing prominence and service sector potential.”
| S.No. | City | Average Capital Values (INR/sq ft) |
| 1 | Bhopal | 3,000-5,000 |
| 2 | Chandigarh | 8,000-10,000 |
| 3 | Mohali | 7,000-9,000 |
| 4 | Zirakpur | 7,000-9,000 |
| 5 | Coimbatore | 5,500-7,500 |
| 6 | North Goa | 10,000-12,000 |
| 7 | South Goa | 6,000-8,000 |
| 8 | Jaipur | 4,000-6,000 |
| 9 | Kochi | 6,000-8,000 |
| 10 | Lucknow | 5,000-7,000 |
| 11 | Nagpur | 4,000-6,000 |
| 12 | Nashik | 3,000-5,000 |
| 13 | Vadodara | 3,000-5,000 |
Key highlights from “The Bharat in India” report:
- Key micro-markets in Tier-2 cities have witnessed significant double-digit capital value appreciation of 10-15% year-on-year, narrowing the price gap with top metros.
- Capital values in premium localities of Goa, Chandigarh Tricity, and Kochi are now almost at par with key markets in Delhi-NCR and Mumbai Metropolitan Region.
- Tier-2 cities like Goa boast robust rental markets with yields as high as 8%, in contrast to 2-3% in major metros.
- Homebuyer preferences are shifting towards high-rise apartments and lifestyle amenities like clubhouses, open spaces, and sports facilities.
- Online property searches by potential buyers in the INR 1-2 crore segment have surged 61%, while the above INR 2 crore bracket has seen a growth of 121%.
“The economic kaleidoscope is shifting, and Tier-2 urban clusters are emerging as new magnets for the skilled workforce and the start-up ecosystem. This report paints a compelling picture of India’s evolving real estate landscape and underscores the immense opportunities that lie ahead for investors, developers, and homebuyers looking beyond the traditional real estate hotspots. Tier-2 cities are no longer on the sidelines; they are becoming major players, attracting investments and offering attractive opportunities,” Agarwala added.
Ankita Sood, Head of Research at Housing.com, said, “Tier-2 cities are the true Bharat of India and their growth momentum has been phenomenal over the last half decade. Trending on our Property Buy Index, which tracks high-intent high volume property activity on our portal, the Tier IIs registered a 88 point lead over the metros. This growing demand for property has pushed prices upwards by 10-15% in key micro markets, bringing some cities like Kochi, Goa, and Lucknow on par with the property prices of key markets in the metros of Gurugram, Mumbai, Bengaluru and Hyderabad.
Sood further added, “Tier-2 cities today are reflecting the preferences of homebuyers that we usually see in major cities with heightened searches for amenity-rich premium homes priced above INR 2 crore. The search for this price bracket has registered the steepest increase of 121% since the pandemic. Tier-II cities will continue to play a key role in shaping the future of India’s real estate market and are also key stakeholders in the country’s growth narrative.”
The complete “The Bharat in India” report, including in-depth city-wise analyses and market projections, is available for download on Housing.com.
