Housing sales decline by steep 37% in Visakhapatnam in Q1 2025

India’s top 15 tier-2 cities witnessed an 8% drop in housing sales during Q1 2025, with 43,781 units sold compared to 47,378 units in the same quarter last year. Despite the fall in volume, the total sales value rose by 6% to Rs 40,443 crore, up from Rs 38,102 crore in Q1 2024, according to a report by NSE-listed real estate analytics firm PropEquity.

Out of the 15 cities analyzed, 11 recorded a year-on-year decline in the number of housing units sold. Visakhapatnam led this downward trend with the sharpest decline of 37% in housing sales, while Ahmedabad and Goa saw the smallest dip, each at just 1%.

In contrast, Lucknow posted the strongest growth in unit sales, registering a 25% rise with 1,301 units sold. It was followed by Coimbatore (21% growth), Gandhinagar (18%), and Mohali (2%).

When it comes to sales value, seven cities experienced a decline. Visakhapatnam again topped this list with a 35% drop, while Vadodara and Nagpur recorded marginal declines of 1% each. On the other hand, Coimbatore led in sales value growth with a 52% surge, clocking Rs 1,120 crore in Q1 2025. Other top performers included Lucknow (48%), Gandhinagar (36%), Mohali and Goa (17% each), Ahmedabad and Bhubaneswar (7% each), and Kochi (5%).

Samir Jasuja, Founder and CEO of PropEquity, commented:

“The decline in sales in tier 2 cities in January-March period is in line with trends witnessed in tier 1 cities. However, lesser supply in this quarter resulted in lower sales in tier 2 cities. State Capitals performed relatively better.”

However, demand remains resilient, especially in state capitals, driven by a growing appetite for organised housing. Urban transformation, improved infrastructure, and expanding employment hubs – especially in IT and manufacturing – are drawing interest not only from local buyers but also from migrants looking to invest in their hometowns, he added.

Among the six state capitals in the top 15 tier-2 cities – Gandhinagar, Jaipur, Bhubaneswar, Lucknow, Goa, and Bhopal – housing sales collectively declined by 5%, while sales value increased by 17%. These capitals accounted for 25% of total unit sales and 30% of overall sales value in Q1 2025.

Regional Performance Highlights – Q1 2025

In Western India, which includes Ahmedabad, Surat, Vadodara, Gandhinagar, Nashik, Nagpur, and Goa, housing sales dipped by 6% in terms of volume. Despite the decline in units sold, the region saw a 6% rise in overall sales value, indicating higher-value transactions.

Northern India, comprising Lucknow, Jaipur, and Mohali, experienced a sharper 14% drop in the number of homes sold. Yet, the region registered a strong 14% growth in sales value, reflecting a shift toward more premium purchases.

In the Southern region, which covers Visakhapatnam, Kochi, and Coimbatore, housing sales volume declined by 12%. Unlike other regions, it also recorded a slight 1% drop in sales value, suggesting relatively weaker market activity.

Meanwhile, Central and Eastern India, represented by Bhopal and Bhubaneswar, saw the steepest decline in unit sales at 18%. However, the sales value held steady, showing no significant change compared to the previous year.

Read also: What could be the future of Vizag real estate?

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