India's Q1 housing sales down 4%: What's the reason?
What's the story
The ongoing slowdown in information technology (IT) hiring and layoffs is beginning to affect India's housing market. This trend is particularly evident in tech-driven cities like Bengaluru, Hyderabad, and Pune where software professionals form a large part of homebuyers. According to Knight Frank India data, the housing sales across the top eight cities fell by 4% year-on-year (YoY) to 84,827 units in Q1 2026.
Trends
New launches declined
Along with the decline in housing sales, new launches have also seen a 2% decrease to 94,855 units during the same period. This indicates a gradual cooling of the market after its post-pandemic boom. Unsold inventory has also increased by 3% to nearly 5.2 lakh units, with National Capital Region (NCR) and Pune being the weakest markets.
Market impact
Weaker buyer sentiment
Market observers noted that IT layoffs, hiring uncertainty, affordability pressures, and global economic concerns have weakened buyer sentiment. This is especially true for the mid-income segment. Ankita Sood from Knight Frank India said after five years of strong growth, a period of consolidation was "inevitable."
Buyer behavior
Sentiment-led pause
Industry experts have said that job and salary uncertainty has made salaried buyers more cautious about long-term financial commitments like home loans. Ashish Narain Agarwal from Property Pistol said the current moderation in housing sales is a sentiment-led pause rather than any structural weakness in the market. He noted residential volumes across top Indian cities have declined by roughly 14% YoY in 2025, influenced by factors like IT sector layoffs, hiring uncertainty, affordability pressures, and broader macroeconomic caution.
Market perspective
End-user demand remains stable
Real estate consultants see the slowdown as a phase of consolidation in the housing market, not a structural decline. They say the end-user demand remains stable in select markets, although the buyers are taking longer to make purchase decisions. Agarwal said buyer behavior is becoming increasingly cautious and research-driven amid these changing market conditions.