India’s housing market is showing signs of stress in 2025–26, particularly in tech-centric hubs. According to PropTiger.com, residential sales fell 12% year-on-year to 3.86 lakh units, the lowest since 2022. Knight Frank India reported a 14% drop in Hyderabad registrations in January 2026, while Bengaluru sales volumes dipped 5% in 2025. Gurugram’s premium corridors also saw slower absorption. Analysts attribute this to IT sector layoffs, prolonged equity market volatility, and cautious buyer sentiment. Developers note that site visits remain healthy, but conversions are slowing, reflecting longer decision cycles. Despite volume weakness, transaction values have held up, driven by premium housing demand, suggesting resilience at the top end of the market.
National Sales Moderation
Residential sales across India declined 12% in 2025, falling to 3.86 lakh units from 4.37 lakh units in 2024, according to PropTiger.com. . Square Yards data showed a 5% decline in registrations across nine major cities, totaling 5.45 lakh units by December 2025. This marks the lowest annual sales since 2022, underscoring a slowdown in buyer confidence.
Hyderabad: Premium Weakness and Volume Decline
Hyderabad has been particularly affected. Knight Frank India reported a 14% drop in registrations in January 2026, with transaction values down 16% due to weakening premium demand. In July 2025, the city saw a sharper 30% yearonyear decline in registration volumes, highlighting underlying weakness despite higherpriced units maintaining value share. Tech layoffs in Gachibowli and Hitec City have slowed decisionmaking, with buyers delaying purchases amid job uncertainty.
Bengaluru: Slower Absorption in Tech Corridors
Bengaluru, India’s IT capital, also saw moderation. Housing sales dipped 5% in 2025 to around 62,205 units, according to industry estimates. Rising prices and cautious sentiment among tech employees contributed to slower absorption, particularly in Whitefield and Outer Ring Road. Developers note that while site visits remain steady, conversions are taking longer, reflecting buyers’ concerns about affordability and employment stability.
Gurugram: Longer Decision Cycles in Premium Markets
In Gurugram, premium corridors such as Golf Course Extension Road and Dwarka Expressway reported slower absorption. Developers flagged longer decision cycles, with buyers taking more time to commit. While site visits remain strong, conversions have slowed, mirroring trends in Hyderabad and Bengaluru.
Premium Segment Resilience
Despite volume weakness, premium housing demand has cushioned overall transaction values. Square Yards reported that while registrations declined, transaction value increased 11% in 2025, reflecting sustained appetite for higherpriced units. Developers believe this resilience indicates underlying strength in the luxury segment, even as midmarket buyers adopt a waitandwatch approach.
The slowdown in housing sales across Hyderabad, Bengaluru, and Gurugram reflects the impact of tech layoffs and market volatility on buyer sentiment. While volumes have moderated, premium housing continues to show resilience, cushioning overall transaction values. Developers are adapting to longer decision cycles with flexible payment plans and targeted offerings. As India’s tech sector stabilises and equity markets recover, housing demand in these critical corridors is expected to regain momentum, reaffirming their role as anchors of the country’s residential growth story.
