Home Buyers Step Back in Bengaluru as Job Insecurities & High Prices crosses the Limits

According to data from the real estate consulting firm Knight Frank India, home sales slowed between January and March 2025 as a result of rising prices and job instability. The Bengaluru and Delhi-NCR markets are where the tendency is most noticeable.

Sales in the March 25 quarter in Delhi-NCR fell 8% year-over-year to 14,248 units, while sales in Bengaluru fell 5% to 12,504 units over the same time frame.

According to market watchers, this is mostly because of worries about job losses, especially in the IT industry, which has been Bengaluru's main source of housing demand.

However, they warned that if there are indications of stability in the labor market, the tendency might turn around in the upcoming quarters.

According to the research, Bengaluru and Delhi NCR have had the largest increases in housing prices, at 12 and 16 percent, respectively, which has led to a decline in market volumes in these areas.

 “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 segments 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.

"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.