Avg housing prices up in 23 major tier II cities; rates fall in 5 small towns: PropEquity

The weighted average prices of housing projects launched across 23 tier-II cities during January-September this year increased up to 65 per cent, while rates fell in five cities, according to PropEquity.

According to data compiled by real estate data analytic firm PropEquity, Jaipur saw the maximum 65 per cent rise in weighted average prices to Rs 6,979 per square feet in the housing projects launched during January-September this year. In the last calendar year, the average rates in Jaipur stood at Rs 4,240 per square feet.

Samir Jasuja, Founder & CEO of PropEquity said, "Tier II cities have seen renewed interest from developers, corporates, financial institutions and investor community."

The cheap availability of land in these cities followed by the massive development of connectivity infrastructure and strong demand has led to an increased supply of premium and luxury housing, he added.

As per the data of north India, Agra saw an increase of 59 per cent in prices, followed by Chandigarh 34 per cent, Bhiwadi 25 per cent, Indore 20 per cent, Dehradun 14 per cent, Ludhiana 11 per cent and Lucknow 1 per cent.

However, Bhopal saw a decline of 5 per cent while Mohali and Sonepat witnessed a fall of 8 per cent and 26 per cent, respectively.

In South India, Guntur saw an increase of 51 per cent, followed by Mangalore 41 per cent, Visakhapatnam 29 per cent, Vijayawada 21 per cent, Coimbatore 11 per cent, Goa 6 per cent and Kochi 2 per cent.

Trivandrum, however, witnessed a decline of 4 per cent while Mysore reported a fall of 14 per cent.

In West India, the housing prices in Gandhi Nagar rose 19 per cent, followed by  Surat 14 per cent, Nagpur 12 per cent, Vadodara 10 per cent, Nashik 4 per cent and  Ahmedabad 4 per cent.

The data for East India showed that prices increased 15 per cent in Bhubaneshwar and 14 per cent in Raipur.

Commenting on the report, Yashank Wason, Managing Director, Royal Green Realty said the demand for quality living spaces is rising in these emerging markets, leading to price appreciation.

Kirthi Chilukuri, MD & Founder of Stonecraft Group, said the price appreciation reflects a growing confidence in Tier-II cities as dynamic residential and investment destinations.