Overview

• Housing supply across the top 15 tier-2 cities fell by 35% year-on-year to 30,155 units in Q1 2025, according to PropEquity.
• Affordable homes priced under Rs 50 lakh saw supply drop by over 50% to 7,124 units, shrinking their share of total launches from 33% to 24%.
• Eastern and Central India recorded the steepest regional declines at 68%, followed by Northern India at 55%, while Western and Southern India saw drops of 28% and 26%, respectively.
• Bhubaneshwar experienced the sharpest city-level contraction at 72%, in contrast to Nashik’s minimal 2% decline.
• The Reserve Bank of India’s 50-basis-point repo rate reduction is expected to lower home loan costs and boost buyer sentiment in the Rs 50 lakh to Rs 2 crore segment.