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India’s residential real estate market is witnessing a quiet revolution and it’s not coming from the metros. Residential plot launches in Tier 2 cities have emerged as the frontrunners in the post-pandemic housing landscape, with over 4.7 lakh residential plots introduced across the top 10 cities between 2022 and May 2025. According to recent data by real estate analytics firm PropEquity, Tier 2 cities now account for over 52% of all residential plot launches, firmly establishing themselves as the driving force behind India’s land-led housing boom.
Tier 2 Cities Lead the Plot Revolution
A deep dive into the numbers shows that smaller cities are not just catching up they’re overtaking metros in new land-based developments. Cities like Indore, Coimbatore, Raipur, Mysore, and Surat have reported a surge in supply, while Hyderabad, Indore, and Bengaluru topped the charts in cumulative launches over the last three years.
From 2022 to May 2025, residential plot launches in Tier 2 cities contributed roughly 2.43 lakh units, surpassing the combined launches in many Tier 1 cities. In 2024 alone, Indore led the pack with over 26,000 units, followed by Chennai and Hyderabad, signalling a shift in developer strategy towards emerging markets with better land availability, lower costs, and robust end-user demand.
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Why Plots Are Gaining Preference Post-Pandemic
The appeal of plotted developments has grown substantially in the post-COVID era. Unlike apartments or high-rises, plots offer greater flexibility, faster appreciation, and the option for custom construction traits that today’s buyers increasingly value. Investors also prefer plots as a low-risk, high-liquidity asset class.
“Plots allow end-users to build as per their timeline and budget. At the same time, developers benefit from faster monetisation and minimal construction risk,” said a senior industry analyst. This explains why residential plot launches in Tier 2 cities are now outpacing apartment sales in many regions.
Price Rise Despite a Dip in Supply
Interestingly, while demand has stayed strong, overall plot supply fell by 23% in 2024 compared to the previous year. The year recorded around 1.26 lakh new plot launches, a dip from 2023’s robust activity. However, this supply contraction has pushed prices upward.
The weighted average launch price of residential plots increased by 27% year-over-year in 2024, reaching approximately ₹3,679 per square foot. This translates to ₹33,111 per sq yard or ₹39,586 per sq metre, reflecting the growing appetite for land even amid limited availability.
Only a handful of cities, Chennai (27%), Coimbatore (40%), and Surat (2%) recorded an increase in supply during 2024. Most others, including Hyderabad and Bengaluru, saw a drop in launches, creating supply-side pressure in high-demand corridors.
What’s Fueling the Boom in Tier 2 Plot Markets?
Several factors are contributing to the rising interest in residential plot launches in Tier 2 cities:
- Affordable Entry Points: Land prices in smaller cities are still within reach for middle-class buyers and investors.
- Better ROI: Plots tend to appreciate faster over time, especially near upcoming infrastructure corridors.
- Post-Pandemic Priorities: Buyers now seek low-density, custom-built homes with more open space.
- Developer Strategy: Plotted developments offer faster project completion and fewer regulatory hurdles.
- Urban Spillover: As Tier 1 cities become saturated, developers are actively expanding into satellite towns and peri-urban areas.
Also Read: Maharashtra Govt Panel Proposes 10% Extra Carpet Area for Self-Redevelopment Projects
Outlook: Plotted Growth, Urban Gains
As more Indians turn to land as a long-term investment, residential plot launches in Tier 2 cities are expected to maintain momentum. With over ₹2.44 lakh crore worth of plotted developments launched between 2022 and 2025, this asset class is quickly becoming a preferred choice for both homebuyers and developers.
With further infrastructural investments, improved connectivity, and increasing migration to smaller cities, Tier 2 markets are poised to lead India’s next phase of residential expansion one square yard at a time.
Final Thoughts
The sharp uptick in residential plot launches in 2 cities is a clear indicator that India’s housing story is evolving. While metros will always hold strategic value, the future lies in the growth corridors of emerging cities where land is still plentiful, prices are competitive, and aspirations are high.
If you're a homebuyer seeking freedom to build your dream home, or an investor chasing capital appreciation, keep your eyes on Tier 2 cities; they're not just the next big thing, they’re already here.
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Ans 1. Because land is more affordable and available in these cities, developers and buyers alike are turning to plots. Tier 2 cities offer better ROI, fewer regulatory delays, and growing infrastructure, making them ideal for plotted developments.
Ans 2. Indore, Coimbatore, Raipur, Mysore, and Surat have seen major activity, while cities like Hyderabad, Indore, and Bengaluru have topped cumulative launches over the past three years.
Ans 3. In many regions, yes. Post-COVID, buyers prefer the flexibility of building on their own terms. Plots also offer faster appreciation and are seen as safer, long-term investments.
Ans 4. Developers likely held back launches to maintain pricing power or due to slower approvals. This reduced supply has, in turn, pushed up prices sharply.
Ans 5. In 2024 alone, average launch prices rose by 27%, reflecting the sustained demand despite fewer new launches.
Ans 6. It’s strong. As infrastructure improves and migration to smaller cities grows, demand for plotted land is expected to stay high, especially among end-users and investors seeking custom homes or future returns.
Ans 7. Yes, especially if you’re looking for long-term value. Prices are still reasonable in many Tier 2 cities, and the ongoing infrastructure development adds to the upside potential.
Ans 8. People now prefer low-density, open spaces over crowded apartment blocks. Plots allow them to design homes with more flexibility, privacy, and room to grow something that aligns perfectly with post-pandemic lifestyle priorities.