The Bengaluru and Delhi-NCR housing sales drop has raised concerns among real estate experts, as rising property prices and job uncertainties continue to impact buyer sentiment.
Rising costs and employment concerns have caused a decline in housing sales in Bengaluru and Delhi-NCR, with the IT capital seeing a 5% decline.
Housing sales have decreased as a result of the real estate market being disturbed by rising prices and employment uncertainty. A Knight Frank report published on April 3 states that between January and March 2025, Bengaluru’s house sales fell 5% to 12,504 units. Sales in Delhi-NCR similarly decreased by 8% annually during that time, reaching 14,248 units.
According to a Knight Frank estimate, between January and March 2025, Bengaluru’s house sales fell 5% to 12,504 units.
In Q1 2025, Bengaluru saw the largest price increase, with prices rising 16% to ₹7,116 per square foot. “Participation has been lower in the ₹50 lakh–₹1.5 crore group, but this tendency might change in the coming time frame. “How pricing and supply will change in the future is still a major question,” Vivek Rathi, Head of Research at Knight Frank India, told HT.com during the report’s release.
The effect of the employment market is a major worry, especially for the IT industry, which has historically been the main driver of Bengaluru’s housing demand.
Bengaluru and Delhi-NCR Housing Sales Drop: Job Uncertainty & Rising Prices Impact Market Growth
“Strong employment creation across a range of sectors is anticipated to be crucial to future growth in places like Bengaluru and Delhi NCR. However, there have been occasional disruptions due to job uncertainty. While prices have risen, sales have declined, leading to a moderation in several markets,” Rathi said.
According to Rathi, the ₹50 lakh ₹1.5 crore market has also seen a decline in availability, underscoring the necessity for further growth to satisfy consumer demand. Since developers are concentrating more on more expensive categories, inventory levels have continued to drop, which is not ideal. Strong demand and take-ups are predicted if further supply falls into the ₹50 lakh to ₹1 crore area.
In Bengaluru, the ₹5–10 crore sector grew at the fastest rate between January and March.
Bengaluru and Delhi-NCR Housing Sales Drop: Luxury Segment Surges 133% in Q1 2025
According to the research, Bengaluru’s residential ₹5–10 crore segment experienced the most YoY sales growth in Q1 2025, rising 133% from 80 units in Q1 2024 to 187 units.
According to Rathi, this market has been primarily driven by the wealth creation of senior and mid-level employees and startup entrepreneurs who have profited from growing prospects. Demand has been further stimulated by the establishment of multiple GCCs in Bengaluru, especially in the BFSI sector. However, there has been comparatively little involvement from third-party IT services in this market.
Additionally, he said that a sizable portion of purchasers are not first-time homeowners but rather are upgrading to nicer homes by either selling their current residences or reinvesting their profits.
According to the research, new launches in this category jumped 36% YoY to 6,765 units, while sales of 4,507 units in the ₹1-2 crore bracket showed a moderate 3% gain.
However, sales in the super-luxury ₹10–20 crore class fell precipitously, falling by over 65% year over year to just five units.
Up to 88,274 residential units were sold in the top eight cities between January and March, according to the report. This resulted in a 2% YoY increase in consumer demand, with Pune and Chennai leading the primary sales volume with 20% and 10% YoY growth, respectively.
Conclusion:
The Bengaluru and Delhi-NCR housing sales drop reflects the impact of rising property prices and job uncertainty on buyer sentiment. While luxury housing segments in Bengaluru have surged, overall sales have declined, signaling market moderation. Experts believe strong employment creation will be crucial for future growth, but short-term fluctuations may continue. As the real estate market adapts, stability in job sectors and controlled price hikes will play a key role in reviving sales momentum.
