Coimbatore Leads Tier-2 Housing Markets with 36% Sales Growth in 2024
India’s tier-2 cities experienced strong real estate growth in 2024, with Coimbatore standing out as the top performer. Housing sales in the city jumped 36%, marking the highest increase among India’s top 15 tier-2 urban centres. This outpaced growth in larger markets and drew new investor interest to the region.
Key Drivers Behind Coimbatore’s Surge
Three main factors drove Coimbatore’s housing boom:
- Affordable Prices: Housing prices in Coimbatore remain competitive compared to metros, offering sustainability and modern infrastructure.
- IT Sector Expansion: Tech firms and startups are boosting demand for residential units, attracting both end-users and investors.
- Infrastructure Revamp: Infrastructure upgrade projects like metro rail, highway, and airport development plans by the Government are enhancing connectivity.
Market Dynamics in Southern India
In the Southern tier-2 cluster (Coimbatore, Visakhapatnam, Trivandrum):
- Sales Value Up 15% to ₹11,404 crore
- Coimbatore Dominance: 36% sales growth vs. Visakhapatnam’s 21% decline
- Trivandrum’s Recovery: Sales rose 16% after the previous year’s decline
| City | 2024 Sales Growth | Sales Value Trend |
|---|---|---|
| Coimbatore | +36% | Rapid price hikes |
| Visakhapatnam | -21% | Flat sales value |
| Trivandrum | +16% | Steady recovery |
PropEquity Insights
According to PropEquity’s 2024 analysis:
“Coimbatore’s growth shows a strategic shift toward livability and economic diversification. Infrastructure investments and IT ecosystem development are reshaping its real estate landscape.” – Samir Jasuja, PropEquity CEO
Regional Comparisons
| Region | Key Highlights |
|---|---|
| South | Coimbatore leads; Southern sales value +15% |
| North | Jaipur (5% sales growth), Mohali (+18% value) |
| East | Bhubaneswar’s 47% sales value surge |
Future Outlook
Government policies might further accelerate growth:
- Tax Incentives: Exemptions for second homes and income below ₹12 lakh
- Economic Hubs: Promotion of Global Capability Centres (GCCs) and tourism infrastructure
- Connectivity: Upcoming infrastructure projects, such as ongoing metro and highway developments, aim to enhance accessibility and connectivity.
Coimbatore’s path offers a model for tier-2 cities balancing affordability, innovation, and strategic investment. As industry demand grows, its market may shape India’s real estate narrative in 2025 and beyond.