Lucknow Residential Sales Defy Nationwide Dip, See 25% Surge in Q1 2025
Market Snapshot
India’s tier-II cities saw an 8% drop in housing sales during Q1 2025, yet Lucknow stood out. The city sold 1,301 units a 25% year-on-year rise and saw sales value soar 48% to ₹1,797 crore. This growth contrasts sharply with nationwide drops, including Visakhapatnam (-37%), Bhopal (-31%), and Jaipur (-32%).
Key Growth Drivers
Lucknow’s resurgence comes from:
- Infrastructure-led demand: Upcoming roadway and Metro lines will improve connectivity, and urban development projects will attract buyers.
- Employment opportunities: Expansion in sectors like IT, education, and healthcare fuels residential needs.
- Organised housing preference: Buyers increasingly favor structured developers over informal markets.
Region-Wide Context
While Lucknow thrived, other state capitals showed mixed results:
- Gandhinagar: 18% units sold growth but 36% value surge
- Bhopal: 31% units decline despite capital inflows
- Ahmedabad: Retained top sales position (14,583 units) and value dominance (₹13,565 crore)
Premium Housing Shift
The 6% overall value rise across tier-II cities, despite an 8% volume drop, signals a market shift toward higher-priced properties. Coimbatore exemplified this trend, with sales value jumping 52% despite moderate unit growth. Lucknow’s value surge aligns with this premiumization, reflecting stronger consumer confidence in regulated projects.
Outlook and Implications
Tier-II cities like Lucknow show the potential for infrastructure-driven growth, bucking national trends. As employment hubs expand, peripheral cities may see sustained demand, especially in states with proactive development policies. However, affordability remains a concern, as price increases accompany premium shifts.