Bengaluru's Housing Sales sees Massive Drop! Rising Prices & Poor Job Market Hits Hard

Housing sales in Bengaluru and Delhi-NCR have dipped due to rising prices and job worries, with the IT capital experiencing a 5% drop.

Employment uncertainties and rising prices have disrupted the real estate market, leading to a decline in housing sales. According to a Knight Frank report released on April 3, Bengaluru’s housing sales dropped 5% to 12,504 units between January and March 2025. Delhi-NCR also saw an 8% annual decline, with sales falling to 14,248 units during the same period.

Bengaluru recorded the highest price growth in Q1 2025, with rates surging 16% to Rs. 7,116 per sq ft.

A key concern is the job market's impact, particularly in the IT sector, which has long been the backbone of Bengaluru's housing demand.

"The Rs. 50 lakh– Rs. 1.5 crore segment has seen lower participation, but this trend may reverse in the next period. Looking ahead, how pricing and supply will evolve remains a key question," Vivek Rathi, Head of Research at Knight Frank India said.

“In cities like Bengaluru and Delhi NCR, strong employment generation across various sectors is expected to play a significant role in future growth. However, employment uncertainties have created some disruptions. While prices have risen, sales have declined, leading to a moderation in several markets," Rathi said.

"In cities like Bengaluru and Delhi NCR, strong employment generation across various sectors is expected to play a significant role in future growth. However, employment uncertainties have created some disruptions. While prices have risen, sales have declined, leading to a moderation in several markets," Rathi said.