Job insecurity & rising costs drive drop in housing sales in Delhi-NCR, Bengaluru

Job worries, rising costs lead to housing sales decline in Delhi-NCR and Bengaluru

Job insecurity and escalating prices triggered  a slowdown in home sales in the January-March 2025 period, according to data from Knight Frank India, a property consultancy firm. The trend is particularly visible in the Bengaluru and Delhi-NCR markets.

Delhi-NCR witnessed an 8 percent on-year drop, with sales falling to 14,248 units in the March '25 quarter, while at 12,504 units, Bengaluru saw a 5 percent slide in sales in the same period.

Market observers say that this is majorly due to concerns about job loss, particularly in the IT sector, which has  been the primary driver of housing demand in Bengaluru. They, however, added that the trend may reverse in the next few quarters if there are signs of stability in the job market.

"The recent dip in housing sales in Bengaluru and Delhi-NCR shows a cautious mindset among buyers. Rising prices and changing job patterns, especially with the growing use of AI, have made people pause before making big decisions. But this is a short-term adjustment. The overall demand for homes is still strong. As job stability improves, we’ll see momentum bounce back—especially for well-priced, well-executed projects,” said Ashwinder R Singh, Chairman, CII Real Estate Committee and Vice Chairman and CEO, BCD Group, a Bengaluru-based real estate organisation.

The data also showed that Delhi NCR and Bengaluru have seen the highest growth in housing prices,  at 12 and 16 percent respectively, which has contributed to the dip in volumes in these markets.

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Sales grew across five of the eight markets under coverage, with Pune and Chennai growing the most, by 20 and 10 percent on-year, respectively. At 24,930 units, the highest sales were recorded in Mumbai, up 5 percent.

Sales in the Rs 1-2 crore segment grew 2 percent on-year, while transactions in the Rs 2 crore and Rs 5 crore category grew 28 percent.

“While overall sales have moderated, the steady rise in prices signals strong end-user confidence and demand for high-quality living spaces. The surge in the Rs 10 crore segment reflects evolving buyer preference for larger, more exclusive homes, supported by a stable economic environment and growing affluence in the NCR region,” said Mudassir Zaidi, Executive Director, North, Knight Frank India.

At 5.03 lakh units, unsold inventory  across the country has increased 5 percent on-year as fresh development has intensified.

“Job cuts, particularly in the IT sector, can have major impact on homebuyers’ confidence in regions like Noida, Gurugram, and Bengaluru, as it has a direct bearing on housing affordability, which in turn leads to a decline in demand for new properties,” a real estate consultant from Gurugram said.