2 weeks ago
Tech Layoffs Weigh on India Housing Sales as Prices Rise
People bought fewer homes in eight large Indian cities during the second quarter.
Sales were down 6% from the previous quarter.
Job cuts and changes caused by artificial intelligence made some technology workers more careful about buying homes.
This was especially noticeable in Bengaluru, Pune and Hyderabad.
Pune had one of the biggest drops, while Chennai and Hyderabad saw sales grow.
Kolkata also recovered compared with the previous quarter, although its sales were still below the same quarter last year.
Home prices continued to rise even though fewer homes were sold.
Experts say festive-season buying may help, but homes becoming less affordable is still a major concern.
Housing sales across eight major Indian markets fell 6% sequentially in Q2.
Buyer caution linked to tech layoffs, AI-led restructuring and the US-Iran conflict affected technology-heavy markets.
Pune recorded the sharpest annual sales decline at 20.8%, while Ahmedabad fell 20.2% and Bengaluru dropped 9.2%.
Hyderabad sales rose 14.6% annually and Chennai sales jumped 36%, while Kolkata recorded the strongest quarterly recovery.
Despite weaker volumes, average prices rose 1% sequentially to ₹10,153 per square foot.
- Who
- Homebuyers, developers and the residential real-estate markets in eight major Indian cities; PropTiger provided the analysis.
- What
- Housing sales fell 6% sequentially in Q2 while average prices continued to rise.
- Where
- Across eight major Indian markets, including Bengaluru, Pune, Hyderabad, Chennai, Kolkata, Ahmedabad, Delhi-NCR and MMR.
- When
- During Q2, with annual comparisons made against Q2 2025.
- Why
- Buyer caution related to technology-sector layoffs, AI-led workforce restructuring and the US-Iran conflict contributed to weaker sales.
Caution and Affordability Concerns
Resilient Demand and Pricing Power
Sales outlook
Caution and Affordability Concerns
Overall sales declined 6% sequentially, with technology-led markets such as Pune and Bengaluru recording annual declines.
Resilient Demand and Pricing Power
Hyderabad and Chennai posted annual growth, while Kolkata recorded a 22% sequential increase.
Home prices
Caution and Affordability Concerns
Annual price increases of up to 26% in Bengaluru could stretch middle-income buyers’ budgets.
Resilient Demand and Pricing Power
Prices rose despite weaker volumes, remaining above ₹10,000 per square foot for a second consecutive quarter.
Near-term prospects
Caution and Affordability Concerns
Technology layoffs, AI-led workforce restructuring and affordability remain risks to demand.
Resilient Demand and Pricing Power
Festive-season buying, recovering demand in Kolkata and infrastructure projects could support the next quarter.
Key facts
- Sequential sales change
- Sales across the eight markets declined 6% in Q2.
- Average price
- The sales-weighted average rose 1% sequentially to ₹10,153 per square foot.
- Largest annual sales decline
- Pune sales fell 20.8% to 12,642 units.
- Strongest annual sales growth
- Chennai sales increased 36% to 7,183 units.
- Largest market
- MMR sold 24,112 homes at an average ₹15,422 per square foot.
- Highest annual price growth
- Bengaluru prices rose 26% to ₹9,931 per square foot.
- Construction-cost effect
- GST reductions on cement, marble and granite created an estimated 2–3% construction-cost buffer.
Quotes
Prakash Tejwani
CEO of PropTiger, real‑estate analytics firm
““Disciplined supply positions developers well for the festive quarter, though affordability remains the key variable to watch.””
businesstoday.in
““Prices have held above ₹10,000 per square foot for two straight quarters even as buyers turn more selective.””
businesstoday.in
Sources
Related news
India Housing Prices Rise 6% in Q1 FY27, Kotak Says
India’s Housing Supply Shifts Sharply Toward Premium Homes
India House Price Growth Slows to 3.6% in Q1FY27
Court defers approver Pradosh’s statement in Renukaswamy murder case
Shivakumar Seeks NITI Aayog Funds, Backs Second Bengaluru Plan
Viswanathan Anand Says AI Has Transformed Modern Chess
Science Quiz Covers Vehicle Communication, Space, Medicine, Missiles and Time
Syrma SGS, Elemaster Launch High-Reliability Electronics Facility in Bengaluru
