Housing sales in the country’s top fifteen tier–II cities have dipped 4% year on year (YoY) to 39,201 units in July – September this year, even as the sales value rose by 4% to Rs 37,409 crore, according to real estate data analytics firm PropEquity. The firm said in a report that the trend points to a gradual shift towards premium homes.

“The new supply declined 10% YoY to 28,721 units in the third quarter ending September 2025. Eight out of the fifteen cities saw YoY decline in sales with Bhubaneshwar witnessing the maximum decline at 26%. Trivandrum saw the maximum rise in sales at19% in Q3 2025,” PropEquity report said.

“Bhubaneshwar saw the maximum decline in new launches at 88% in Q3 2025. Eight out of fifteen cities saw a decline in new launches. In volume terms, Ahmedabad remained the top market in terms of both sales and launches in Q3 2025,” it added.

 “There has been a steady decline in new housing launches, especially in the high-volume affordable and mid-income segments. With rising input costs and evolving consumer aspirations pushing up home prices and home sizes, sales momentum in these markets has begun to moderate,” said Samir Jasuja, Founder and CEO, PropEquity.

“That said, tier II cities remain the key engines of India’s growth story. Expanding employment opportunities, improving infrastructure, and stronger connectivity continue to drive sustained demand across residential, commercial, and retail real estate,” Jasuja added.

“On QoQ basis, housing sales fell by 3%, sales value by 1% and launches by 26% in Q3 2025,” the report pointed out.

North India remained an outlier in sales, while other three regions saw a decline in sales. “Northern India comprising Lucknow, Mohali and Jaipur saw 16% YoY and 7% QoQ rise in sales in Q3 2025,” the report said.

“Western India, comprising Ahmedabad, Surat, Gandhi Nagar, Vadodara, Nashik, Nagpur and Goa saw 6% YoY and 4% QoQ decline in sales in Q3 2025. The western region accounted for 76% of the total sales,” the report added.

“Southern India, comprising Coimbatore, Trivandrum and Kochi saw 7% YoY decline and 3% QoQ rise in sales in Q3 2025. Central and Eastern India comprising Bhopal and Bhubaneshwar saw 14% YoY and 13% QoQ decline in sales in Q3 2025,” said the report.