Housing sales decline in Delhi-NCR and Bengaluru due to job uncertainty and increasing living expenses

2025-04-12 03:41:04

Housing Sales Dip in Delhi-NCR and Bengaluru Amid Job Uncertainty and Rising Prices

The residential property market in Delhi-NCR and Bengaluru experienced a notable slowdown in the January–March 2025 quarter, primarily due to growing job insecurity—especially in the IT sector—and rising housing prices, according to data from Knight Frank India, a leading property consultancy.

Delhi-NCR recorded an 8% year-on-year decline in home sales, falling to 14,248 units, while Bengaluru saw a 5% drop, with 12,504 units sold during the same period. Experts attribute this decline to cautious buyer sentiment triggered by fears of job loss and reduced affordability, particularly in the tech-driven Bengaluru market.

“This temporary dip in sales reflects a cautious approach by buyers amidst evolving job dynamics and rising home prices,” said Ashwinder R Singh, Chairman of the CII Real Estate Committee and Vice Chairman & CEO of BCD Group. “The rise of AI and shifts in employment trends have caused a pause in purchase decisions. However, demand remains fundamentally strong, and once job stability returns, we can expect renewed momentum—especially for projects that are well-executed and reasonably priced.”

Both Delhi-NCR and Bengaluru also witnessed the steepest increases in housing prices—12% and 16% respectively—which have contributed to the slowdown in sales volumes. Analysts suggest that the current trend may reverse in the coming quarters, provided the job market shows signs of recovery.

Despite the slowdown in these two key markets, housing sales rose in five out of the eight major cities tracked, with Pune and Chennai leading the way—posting annual growth of 20% and 10% respectively. Mumbai remained the top performer in absolute terms, with 24,930 units sold—a 5% increase year-on-year.

Interestingly, the Rs 1–2 crore price segment registered a modest 2% growth in transactions, while homes priced between Rs 2 crore and Rs 5 crore saw a substantial 28% increase. The ultra-luxury segment (Rs 10 crore and above) also showed significant growth, reflecting the rising demand for spacious, premium homes among affluent buyers, especially in the NCR region.

“The strong performance in higher-end segments signals growing end-user confidence, even as overall sales have slowed. Rising affluence, combined with a stable economic outlook, continues to fuel interest in high-end living spaces,” said Mudassir Zaidi, Executive Director (North) at Knight Frank India.

Meanwhile, unsold inventory across India increased by 5% year-on-year to 5.03 lakh units, as new project launches gained pace.

“Layoffs in the IT sector are having a ripple effect on housing demand in tech hubs like Bengaluru, Noida, and Gurugram,” noted a Gurugram-based real estate consultant. “These job losses directly impact purchasing power and housing affordability, dampening demand for new homes in these regions.”