Housing sale in tier 2 cities growing at rapid pace: Report
9/21/2022 10:27:00 AM
Ahmedabad, Vadodara, Nashik, Gandhi Nagar and Jaipur have emerged as the top five tier-II cities in growth of residential property market on the back of rapid urbanisation,
industrialisation and growth of IT industry, according to recent report by real estate data analytics and consultancy company, PropEquity.
The report highlights that there has been a remarkable jump in both absorption as well as supply of quality residential properties in various price brackets in these cities. The report
has tracked performance of the residential segment of the real estate sector in various tier-II cities from FY 2017-18 to FY 2021-22.
“The real estate activity in tier 2 cities is fast catching up with that of tier 1 cities. Interestingly, Ahmedabad’s residential real estate market size of Rs 83,390 crore has outshone some
of the Tier 1 cities like Chennai and Kolkata with market sizes of Rs 52,554 crore and Rs 38,440 crore respectively at the end of fiscal year 2021-22. Although, it is also interesting to
observe that the market share of Tier-I cities is about 4x times the share of Tier-II cities in the last five fiscal years . ,” said Samir Jasuja, Founder and Managing Director at PropEquity.
This report tracked the current residential real estate scenario in India with focus on the top Tier II cities. The duties that were part of the study are Amritsar, Mohali, Chandigarh,
Panipat, Dehradun, Bhwadi, Sonepat, Jaipur, Agra, Lucknow, Bhopal and Indore, Vishakapatnam, Vijaywada, Guntur, Goa, Manglore, Mysore, Coimbatore, Kochi, Trivandrum, Raipur,
Bhubaneshwar, Ahmedabad, Gandhi Nagar, Vadodara, Surat, Nashik and Nagpur.
“Post COVID lockdowns, tier 2 cities have been witnessing new job creation at a decent rate and many tech and other sector companies are encouraging work from home for their
employees for at least next couple of years. This had led to scenario where tier 2 city housing projects are getting great traction due to their attractive pricing and potential for a higher
upside in terms of investments,” Abhishiekh Andlay, Founder, Andlay Estates, said.
The sales of homes in Ahmedabad stood at 39,046 units in fiscal year 2021-22, a growth of 26% as compared to financial year 2020-2021. When compared to fiscal 2017-18, a growth
of 32% was witnessed in the city. The supply of homes in Ahmedabad stood at 39,195 units in financial year 2021-22, a growth of 14% as against fiscal year 2020-2021.
Second ranked Vadodara witnessed a growth of 25% in sales of homes at 17,285 units in fiscal 2021-22 as compared to the previous fiscal. When compared to financial year 2017-18,
a jump of 20% was seen. The supply of new homes stood at 15,046 units in fiscal 2021-22, an increase of 9% as against the previous financial year.
Third ranked Nashik witnessed sales of 10,806 units in fiscal 2021-22, a growth of 15% on year-on-year basis. New supply of homes in Nashik stood at 13,037 units in 2021-22 fiscal,
a whopping growth of 68% as compared to the previous fiscal.
Fourth ranked Gandhi Nagar saw sales of 7,650 units in fiscal 2021-22, a growth of 10% as compared to the previous fiscal. New supply of homes in Gandhi Nagar stood at 6,361
units in the financial year 2021-22, a drop of 30% on a year-on-year basis.
Fifth ranked Jaipur saw sales of 7,676 units in fiscal 2021-22, a whopping growth of 42% as compared to the previous fiscal. New supply of homes in Jaipur stood at 7,022 units in the
financial year 2021-22, a massive increase of 78% on a year-on-year basis.
The inventory of homes in Jaipur stood at 14,529 units at the end of fiscal 2021-22, a marginal dip of 4% when compared to the previous fiscal. It will take 23 months to clear at the
current rate of sales.
Source: Economic Times