Tier-II Cities Outshine Metros in Property Price Growth; Goa, Coimbatore Lead with Double-Digit Surge

On its path to prosperity, the real estate landscape begins to paint bright pictures in Tier-II cities of India, meanwhile, leaving behind major metros in terms of capital appreciation, favored by factors of better infrastructure, affordability, and increasing demand. Magicbricks has released a new report showing that average capital appreciation in Tier-II cities stands at 17.6%, while Tier-I cities report an average of 11.1%.

Many of the surveyed 19 Tier-II cities recorded YoY appreciation in double digits. At the forefront is Goa, with an incredible 64.61% appreciation in property prices in Q2 2025, reaching ₹14,028 per sq. ft. on account of booming tourism infrastructure and lifestyle demand.

Down south, Coimbatore has surged 46.65% to ₹5,970 psf, driven by Coimbatore’s rising stature as an industrial and educational hub. Kochi notched a 14.75% increase. Lucknow saw the highest appreciation in the north at 23.70% to ₹6,880 psf, with Kanpur following it at 19.52% to ₹7,049 psf.

Other key performers are Jaipur (21.32%), Indore (22.81%), Bhubaneswar (19.54%), and Patna (17.09%). Such trends prove that investor and end-user interest is fast growing toward smaller cities that carry lifestyle appeal and future growth potential.

Tier-I cities, on the other hand, had a more moderate increase: Delhi at 11.10%, Mumbai at 25.40%, and Chennai at 14.90%.

According to Magicbricks CMO Prasun Kumar, Tier-II cities are getting more attraction with the changing aspirations of the consumers and with respect to target infrastructure projects. “The affordability that is in sync with aspiration is pulling strong capital growth away from the metros,” he said.

Nevertheless, all Tier-II markets have not grown equally. Mysore, for instance, faced a 4.69% dip in YoY prices, albeit with some recovery showing through 2.44% quarter-on-quarter growth. Surat also recorded rather mediocre growth of 0.32%.

As noted by Alpha Corp CFO Santosh Agarwal, there are some emerging destinations such as Meerut and Karnal. “Karnal’s transformation, bolstered by the RRTS extension, is significantly improving its connectivity with Delhi,” he said.

With improvements in affordability and connectivity, Tier-II cities are shaping up to be the next frontier for real estate investment.