Mumbai, March 7 – A recent report reveals that Tier 2 and Tier 3 cities are emerging as key players in India’s real estate market. Last year, a whopping 44% of the 3,294 acres of land bought by developers were in these growing areas.
This shift points to a new investment trend, showcasing the potential of these cities for long-term growth. In 2024, housing sales hit 681,138 units across 60 cities, marking a significant 23% increase compared to the previous year, according to a report by CREDAI and real estate research firm Liases Foras.
The primary builder’s market saw sales worth Rs 7.5 lakh crore, reflecting a remarkable 43% growth year-on-year. A major contributor to this surge was the luxury and ultra-luxury housing segment, which made up 71% of total sales, thanks to the demand for higher-priced properties and a healthier balance between supply and demand.
Homes priced between Rs 1-2 crore witnessed a substantial 52% increase in sales, with 132,532 apartments sold. The ultra-luxury market (above Rs 2 crore) grew even faster, with a 73% jump in sales, showcasing how developers are increasingly targeting affluent buyers.
Overall, the real estate sector is now valued at Rs 22.5 lakh crore and plays a vital role in India’s economy, contributing 7.2% to GDP. This emphasizes how Tier 2 and Tier 3 cities are becoming vital growth engines by offering affordable options alongside high-value transactions.
While major metro cities still lead in luxury housing sales, the rise of Tier 2 and 3 cities is creating a more balanced market where mid-range and affordable properties are increasingly essential. Cities like Lucknow, Jaipur, and Bhubaneswar are seeing consistent price growth, which strengthens their real estate markets.
Boman Irani, President of CREDAI, noted that as these cities turn into economic and industrial centers, the demand for affordable and mid-segment housing will continue to rise.
Check out this related article: Revolutionary Sunlight Method: Indian Researchers Discover Efficient Hydrogen Peroxide Synthesis!
Source link