Tier II Cities Drive Rs 2.44 Lakh Crore Boom In Residential Housing Plots Panipat
The Residential Plot market in India, particularly in Tier II cities, has experienced a significant boom, with a total value of ₹2.44 lakh crore between 2022 and May 2025. Tier II cities have been the primary drivers of this surge, accounting for 52% of the 4.7 lakh residential plots launched during this period. This trend is attributed to evolving buyer preferences for privacy, customization, and long-term value, alongside infrastructure upgrades and a desire for low-density living post-pandemic.
The weighted average price of Residential Plots increased by 27% in 2024, reaching ₹3,679 per square foot . The first five months of 2025 alone saw the launch of 45,591 new plots . This growth is fueled by several factors, including strategic infrastructure development projects like the KMP Expressway and the Namo Bharat project, which enhance connectivity and attract both prospective homeowners and investors, including millennials and Non-Resident Indians (NRIs).
Leading growth centers in this segment include Sonipat and Rohtak, which offer attractive alternatives to densely populated metro areas . Other emerging hotspots for plot investments include Godrej Plots Panipat, Karnal, and Panchkula. Hyderabad, Indore, and Bengaluru were among the top cities for cumulative plot supply between 2022 and May 2025, with Indore, Chennai, and Hyderabad leading in 2024. Jaipur has also shown remarkable growth, with a 98.2% property price increase in 2025, making it a leading Tier II city for real estate investment.
Major real estate developers such as DLF, M3M, Godrej, Omaxe, and Prestige are actively investing in these Tier II cities, focusing on integrated townships and gated communities that offer modern amenities and strong infrastructure. The market outlook remains positive, with a projected land appreciation of 40-60% over the next five years . This shift reflects a broader trend of urban decentralization and a growing preference for land ownership, offering buyers the flexibility to design personalized living spaces and benefit from long-term capital appreciation Plots in Panipat.
