Tier-II cities, including Ahmedabad, Vadodara, Nashik, Gandhi Nagar and Jaipur, have emerged as the top five of their kind with respect to the growth of the residential property industry on the back of urbanization, industrialization and growth of the IT industry, said a report. is found out.
According to the report by PropEquity Title ‘Tier-II: Residential Overview’, Ahmedabad’s residential real estate market size is Rs 83,390 crore, surpassing some Tier I cities like Chennai and Kolkata which have market size of Rs 52,554 crore and Rs. 38,440 crore is Rs. FY2021-22 respectively. during
“Real estate activity in Tier 2 cities is increasing at a faster rate with Tier 1 cities. Interestingly, Ahmedabad’s residential real estate market of Rs 83,390 crore has overtaken some Tier 1 cities like Chennai and Kolkata with market size of Rs 52,554 crore and Rs 38,440 crore at the end of the financial year 2021-22. It is interesting to see that the market share of Tier-I cities is almost 4 times that of Tier-II cities in the last five financial years,” said Sameer Jasuja, Founder and Managing Director, ProEquity.
The report further said that between FY18 and FY22, there has been an increase in the absorption and supply of quality residential properties across the price bracket in these cities.
“Post COVID lockdown, tier 2 cities are creating new jobs at a decent rate and many tech and other sector companies are encouraging work from home for their employees at least for the next few years. This had given rise to the scenario where Tier 2 city housing projects are gaining traction due to their attractive pricing and high buoyancy potential in terms of investment,” said Abhishek Endley, Founder, Endley Estates.
The total sales value of Tier 1 cities in the last five years from FY 2017-18 to FY 2021-22 was Rs 12.21 lakh crore, while it was Rs 3.14 crore in case of Tier 2 cities, the report said.
The household stories in Ahmedabad in the financial year 2021-22 stood at 39,046 units with a growth of 26 per cent over the financial year 2020-2021. Compared to the financial year 2017-18, the city witnessed a growth of 32 per cent. The household supply in Ahmedabad stood at 39,195 units in the financial year 2021-22, which is an increase of 14 per cent over the financial year 2020-2021.
Meanwhile, second-ranked Vadodara saw a 25 per cent increase in home sales to 17,285 units in FY 2021-22 as compared to the previous fiscal. Compared to the financial year 2017-18, it saw a jump of 20 per cent.
Nashik, ranked third, saw sales of 10,806 units in FY 2021-22, a growth of 15 per cent on a year-on-year basis. The new supply of houses in Nashik stood at 13,037 units in the financial year 2021-22, an increase of 68 per cent over the previous financial year.
Gandhinagar saw sales of 7,650 units in FY 2021-22, a growth of 10 per cent over the previous fiscal. The new supply of homes in Gandhi Nagar stood at 6,361 units in the financial year 2021-22, a decline of 30 per cent on a year-on-year basis.
In the financial year 2021-22, 7,676 units were sold in Jaipur, which is 42 percent more than the previous financial year. The new supply of homes in Jaipur stood at 7,022 units in the financial year 2021-22, which is a massive 78 per cent growth on a year-on-year basis.
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