Tier-II cities lead the charge in property appreciation, surpassing metros

Property Market Soars Tier-II Cities Lead Growth

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India’s real estate sector is undergoing a dramatic transformation as Tier-II cities outshine metros in property appreciation, according to the latest Magicbricks report.

The average capital appreciation in Tier-II cities has surged to 17.6 per cent, notably ahead of Delhi's 15.7 pc and the national capital's 11.1 pc. This shift signals a growing preference among investors and homebuyers for emerging urban centers, where the potential for robust returns is increasingly evident.

Northern India stands out in this trend, with Kanpur and Lucknow leading at 24.53 pc and 22.61 pc year-on-year (YoY) capital appreciation respectively. These cities, along with others like Dehradun, Jaipur, and Patna, are experiencing substantial growth, driven by a combination of affordability and strong demand.

For instance, the average price per square foot in Lucknow is Rs 6,394, Kanpur Rs 6,986, Dehradun Rs 5,653, and Jaipur Rs 5,654 — significantly lower than Delhi’s Rs18,618 per sq ft. This price gap offers an accessible entry point for both end-users and investors seeking value and upside potential, the study said.