Last Updated:June 12, 2025, 12:46 IST
Bhubaneshwar witnesses the highest decline at 72% to 772 units in Q1 2025, while Nashik sees the least decline at 2% to 2,466 units.
Housing units priced under Rs 2 crore accounted for 95% of the total supply in January-March 2025, up from 87% in the same period last year.
Housing supply in India’s top 15 tier-2 cities declined by 35% to 30,155 units during January-March 2025 (Q1 2025), said a report by NSE-listed real estate data analytics firm PropEquity. Out of the total launches in Q1, 48% were in the price category of Rs 50 lakh-Rs 1 crore.
The supply had stood at 45,901 units, with 36% of the launches in price range Rs 50 lakh-Rs 1 crore in the corresponding period last year.
City-wise, Bhubaneshwar witnessed the highest decline at 72% to 772 units in Q1 2025, while Nashik saw the least decline at 2% to 2466 units.
The report further added that the Eastern and Central India with 68% fall in new launches in Q1 2025 saw the highest decline followed by 55% in Northern India, 28% in Western India and 26% in Southern India.
The seven state capitals in the top 15 tier 2 cities saw 43% decline in supply in Q1 2025.
Samir Jasuja, founder and CEO of PropEquity, said, “The decline in supply is a result of cautious approach and shifting priorities by developers. Financially robust developers with strong balance sheet look to launch premium homes in order to increase their profit margin. As a result, supply of homes under Rs 50 lakh has seen a consistent decline due to its unviability. Meanwhile, homes priced between Rs 1-2 crore have not only seen a 17% Y-o-Y growth in supply but also its supply share increasing from 18% to 23%.”
With home loan rates hovering around 8-8.5%, the recent reduction of 50bps in repo rate by the RBI will further drive down the home loan rates thereby providing an impetus in the Rs 50L-2cr priced homes in tier 2 cities, he added.
“The tier 2 cities present a huge opportunity for corporates and developers as massive infrastructure development and government’s focus on making these cities as growth drivers will enable end-user demand,” Jasuja said.
Housing Supply On The Basis Of Prices
Housing units priced under Rs 2 crore accounted for 95% of the total supply in Q1 2025, up from 87% in the same period last year.
The supply of units priced under Rs 50 lakh, more than halved to 7,124 units in Q1 2025 as against 15420 units in the same period last year. Its share to total supply fell from 33% to 24% in Q1 2025.
Similarly, supply of units priced between Rs 50 lakh and Rs 1 crore dipped by 12% and its share rose from 36% to 48% in Q1 2025.
The supply of units priced between Rs 1-2 crore dipped by 17% and its share rose from 18% to 23% in Q1 2025.
Supply of units priced Rs 2 crore and above dipped by 73% in Q1 2025 and its share dipped from 13% to 5% in Q1 2025.
State sapitals saw 90% drop in supply of units priced under Rs 50 lakh and 13% drop in supply of units priced between Rs 50 lakh-Rs 1 crore in Q1 2025. However, supply of units priced between Rs 1-2 crore rose by 31%.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso… Read More
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