Tier 2 & 3 Cities Drive 44% of Land Acquisitions

25 Mar 2025 CW Team

India’s real estate sector is undergoing a significant transformation as developers shift focus to Tier 2 and Tier 3 cities. A recent CREDAI-Liases Foras report, unveiled at the New India Summit 2025 in Nashik, reveals that these emerging urban centers accounted for 44% of the 3,294 acres of land acquired by developers in 2024.

Key Market Trends & Insights: Housing sales in 2024 reached 681,138 units across 60 cities, reflecting a 23% YoY increase. Sales value in the primary market hit Rs 7.5 trillion, a staggering 43% YoY growth, driven by sustained demand across all segments. Luxury & ultra-luxury properties dominated, contributing 71% of total sales value, signaling a growing preference for premium living.

Boom in High-End & Affordable Housing Properties priced Rs 1 million saw a 52% sales surge, with 1,32,532 apartments sold. Ultra-luxury homes Rs 20 million+ recorded a remarkable 73% growth, highlighting developers' confidence in high-net-worth buyers. Affordable housing remains a key driver, particularly in the Priority Sector Lending (PSL) category (homes under Rs 30 lakh) and the Rs 30-50 lakh segment.

Cities Leading Growth & Investment Price appreciation hotspots: Lucknow, Jaipur, Bhubaneswar Affordable housing hubs: Ahmedabad, Pune, Indore, Coimbatore

With urbanisation accelerating and government initiatives like Gati Shakti improving connectivity, these emerging cities are rapidly becoming prime real estate destinations for both first-time buyers and investors.

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