Indore’s Rise as a Residential Plot Hotspot
Indore has established itself as India’s leading city for residential plot launches in 2025, showcasing a trend favoring tier-II markets over traditional urban centers. From January to May 2025, developers launched 45,591 plots nationwide, with Indore leading the way alongside Hyderabad and Bengaluru. This surge highlights a post-pandemic shift toward plotted developments, which appeal to investors looking for liquidity and quick appreciation.
Main Drivers Behind Indore’s Growth
- Investor Demand: Buyers focus on plots for better returns and construction flexibility, driving demand-driven value appreciation.
- Developer Cash Flow: Plots price rise faster than apartments, a key advantage in dynamic markets.
- Growth in Tier-II Cities: Indore’s growth fits a nationwide trend where tier-II cities account for 52% of plotted launches across the top 10 cities.
Statistical Snapshot
- 2024 Leaders: Indore topped annual launches with 26,538 plots, followed by Chennai and Hyderabad.
- Price Trends: Weighted average launch prices rose 27% YoY in 2024 to ₹3,679 per sq. ft.
- Supply Dynamics: While Chennai (+27%), Coimbatore (+40%), and Surat (+2%) saw growth in 2024, seven other cities experienced declines.
Performance Compared to Competitors
| City | Plot Supply (2022–May 2025) | Tier-I vs. Tier-II Status |
|---|---|---|
| Indore | Leading Tier-II City | Tier-II |
| Hyderabad | High Supply (48% in Tier-I) | Tier-I |
| Bengaluru | Steady Growth | Tier-I |
| Chennai | Rising Demand | Tier-I |
Indore’s success contrasts with tier-I cities, where supply remains centralized. However, Hyderabad and Bengaluru maintain strong Tier-I positions, together supplying 48% of launches from metro areas.
The Future Outlook
PropEquity’s data shows a ₹2.44 lakh crore launch value for plots since 2022, predicting sustained demand. For Indore, key factors include:
- Policy Support: Untapped land banks and streamlined approvals.
- Infrastructure Growth: Expansion in transportation and utilities.
- Market Diversity: Balancing investor-driven demand with end-user needs.
As the competition for market share grows, Indore’s ability to balance scale with quality will determine its staying power. With tier-II markets driving India’s real estate narrative, the Madhya Pradesh capital is set to redefine urban living and investment trends.