Ahmedabad has emerged as a new 'Tier-1' city in India due to rising demand and robust supply in the real estate market, surpassing its previous classification as a 'Tier-2' city.
The landscape of real estate in India is evolving, particularly in Tier-2 cities, where a growing trend towards expensive homes is shifting market dynamics. In 2025, an expected ₹1.48 lakh crore worth of business was recorded in these cities; however, a significant rise in property prices has resulted in a 10% decrease in sales volume. According to a report from PropEquity, Ahmedabad has emerged as a new powerhouse, demonstrating impressive demand and supply metrics that have enabled it to shed the 'Tier-2' label and make a grand entry into the 'Tier-1' city league.
Sales data reveals a dramatic decline in market activity across several cities, with Visakhapatnam experiencing the steepest drop at 38%. Other cities like Bhubaneswar and Vadodara followed with reductions of 25% and 19%, respectively. Surprisingly, Mohali and Lucknow stood out as exceptions, witnessing an increase in sales of 34% and 6%, which indicates regional variations in demand despite the general trend of declining sales.
The market is increasingly gravitating towards premium housing, reflecting changing consumer preferences as more individuals seek high-end properties. The report highlights a 15% decrease in the sale of homes priced under ₹1 crore, shifting its market share from 77% in 2024 to 72% currently, while properties worth over ₹1 crore have seen a surge of 9%. This trend underscores a notable transformation in buyer behavior and market opportunities in India's real estate sector.
