Tech layoffs, market volatility slow housing momentum in Hyderabad, Bengaluru, Gurugram

Tech layoffs and market volatility slow housing momentum in Hyderabad, Bengaluru, Gurugram

• Home sales drop in Hyderabad, Bengaluru, Gurugram due to tech layoffs
• Job uncertainty and weak markets delay buyer purchases
• Property registrations and sales drop in major cities

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Home sales in Hyderabad, Bengaluru and Gurugram are losing momentum as layoffs and job uncertainty in the technology sector, along with a lacklustre equity market, weigh on buyer confidence.

Market observers said layoffs in the IT sector and prolonged stock market volatility have prompted buyers to delay big-ticket purchases. Home-buying decisions are taking longer in key tech corridors such as Whitefield and Outer Ring Road in Bengaluru, Gachibowli and Hitec City in Hyderabad, and parts of Gurugram’s Golf Course Extension Road and Dwarka Expressway.

“Earlier, buyers would commit within a few site visits. Now, even serious end-users are waiting for clarity on markets and income visibility,” said a Bengaluru-based property broker.

Vishal Raheja, Founder and MD, InvestoXpert Advisors, said that the current environment reflects a recalibration rather than a demand deficit.

“A large share of buyers in tech-centric clusters derive income from salary increments, performance bonuses and equity-linked compensation. When equity markets turn volatile, decision cycles become more structured, moving from impulse-driven to evaluation-driven,” he said.

Property registrations signal moderation in sales

According to a report by PropTiger.com, residential sales declined 12 percent across the country at 3.86 lakh units in 2025, down from 4.37 lakh units in 2024. This is the lowest annual sales since 2022.

Data from Knight Frank India shows that residential property registrations in Hyderabad were notably down during key periods. In January, registrations fell 14 percent to 4,686 units from a year earlier, while the overall transaction value dipped 16 percent, largely due to weakening premium demand, a growth driver in 2025.

Earlier in July 2025, Hyderabad saw a sharp 30 percent year-on-year drop in registration volumes to 6,128 homes, even as higher-priced units maintained a larger share of transaction value, underscoring underlying volume weakness.

Similarly, the data from Square Yards showed that across nine major cities, residential property registrations declined 5 percent to 5.45 lakh units by December 2025, compared with the previous year, even as total transaction value increased 11 percent.

Registrations in cities including Bengaluru and Hyderabad contributed to this moderation, reflecting a broader slowdown in volumes, experts said.

In Bengaluru, sales volumes have also softened. According to industry estimates, housing sales dipped about 5 percent in 2025 to around 62,205 units, as rising prices and cautious buyer sentiment tempered demand.

Slower decision-making by tech and service sector employees — many affected by industry layoffs and volatility — has emerged as a key factor behind longer sales cycles in markets like Whitefield and ORR.

Developers flag longer decision cycles

Developers operating in tech-centric markets such as Hyderabad, Bengaluru and Gurugram said site visits remain healthy, but conversions have slowed.

“There is demand on the ground, but buyers are taking longer to decide. The IT sector uncertainty and weak capital markets are clearly weighing on sentiment,” said a senior executive at a Gurugram-based real estate developer.

A Hyderabad-based developer echoed similar concerns and said, “Gachibowli and Hitec City still attract end-users, but buyers are negotiating harder and delaying commitments. The confidence we saw post-pandemic is moderating.”

They note that tech professionals, traditionally an active buyer segment, are taking longer to commit to purchases, with many delaying decisions amid concerns about future income growth and job stability.

Neelu Jain, Director, SNN Raj Corp, a Bengaluru-based developer, said housing sales have slowed due to layoffs in the IT and services sectors and delivery delays.

“The real estate industry is witnessing an interesting phase with the upheaval in the job market, coupled with lower interest rates, making serious buyers enter the fray. This is leading to an increase in the demand for ready-to-move-in properties over under construction, although the time to close a deal has extended as home buyers want to be extremely positive of their investment,” she said.

Raheja said that despite the recalibration, today’s market fundamentals are significantly stronger than in earlier cycles. Developers are operating with tighter capital structures, phased launches and data-backed pricing strategies.

“Buyers are applying sharper financial filters, and developers are aligning supply with realistic absorption patterns. Historically, such phases have strengthened price stability and enhanced end-user confidence,” he said.

As hiring pipelines stabilise and equity markets regain rhythm, booking cycles are likely to compress, positioning these tech-driven housing markets for the next leg of growth, Raheja said.