Housing demand across India’s top 15 tier 2 cities recorded a marginal slowdown in Q3 2025, with sales dipping 4% year-on-year to 39,201 units even as the overall sales value rose 4% to ₹37,409 crore. Data published by NSE-listed real estate analytics firm PropEquity indicates a shift in buyer preference toward higher-value homes.
New supply also dropped, falling 10% year-on-year to 28,721 units during the quarter ending September 2025.
Eight of the fifteen tracked cities saw a decline in sales. Bhubaneswar faced the sharpest drop at 26% year-on-year, while Trivandrum registered the strongest rise at 19%. Bhubaneswar also recorded the steepest fall in new supply at 88%.
Ahmedabad continued to lead in both sales and launches by volume in the quarter.
Samir Jasuja, Founder and CEO of PropEquity, said that new housing launches have seen a steady decline, particularly in mid-income and affordable segments where rising input costs are pushing up prices. He added that despite the moderation in sales momentum, tier 2 cities remain central to India’s real estate expansion driven by job growth, infrastructure upgrades, and better connectivity.
On a sequential basis, housing sales declined 3%, sales value fell 1%, and new launches dropped 26% compared to Q2 2025.
Regionally, western India — including Ahmedabad, Surat, Gandhinagar, Vadodara, Nashik, Nagpur and Goa — accounted for 76% of total sales. The region witnessed a 6% year-on-year and 4% quarter-on-quarter decline.
Northern markets such as Jaipur, Mohali and Lucknow saw sales grow 16% year-on-year and 7% quarter-on-quarter. Southern cities, including Coimbatore, Trivandrum and Kochi, reported a 7% year-on-year decline but a 3% quarter-on-quarter rise. Central and eastern cities — Bhopal and Bhubaneswar — experienced a 14% year-on-year and 13% quarter-on-quarter drop.
Launches followed a similar pattern. Western India, contributing 78% of all new launches, saw both year-on-year and quarter-on-quarter declines. Northern, southern and central-eastern regions also recorded contraction in supply activity.
