AI-Driven IT Concerns Send 10 Realty Stocks Tumbling Up to 22% in 2 Months

Shares of real estate companies, particularly those with significant exposure to Bengaluru, have fallen sharply by as much as 22% in the first two months of the year. The decline comes amid concerns that AI-driven disruption in the IT sector — and potential job cuts — could dampen housing demand in key property markets. The steep correction has dragged the Nifty Realty index down nearly 12% so far this year. Market experts caution that the sector may witness further consolidation in the near term as uncertainty persists.

Brigade Enterprises shares were the top loser among the pack, falling around 22% in 2026 so far. The company is headquartered in Bengaluru and has operations across other southern cities. Earlier in January, the company had announced further expansion into the city, which is known as the ‘Silicon Valley of India’.

Godrej Properties shares dropped more than 14% in 2026 so far. The Mumbai-based company is also one of the top three developers in Bengaluru. Additionally, while Bengaluru enjoys the reputation of being India’s tech capital, other markets such as Gurugram and Mumbai have also emerged as key hubs for IT offices.

Prestige Estates Projects' shares have fallen over 13% in 2026 so far. The stock has declined over 7% in the past five days and closed around 3% lower at Rs 1,389.70 per share on Friday. The Bengaluru-headquartered company has several existing and upcoming projects in the city.

DLF shares have declined around 13% in 2026 so far. The Gurugram-headquartered company has several key projects in Bengaluru and also houses key commercial and residential properties in Northern India, which sees strong demand from IT professionals.

Phoenix Mills shares have declined over 11% in 2026 so far. The company has several commercial properties, including popular shopping malls in Bengaluru. The possible IT layoffs due to rapidly advancing AI technology may have triggered worries around reduced demand for the company.

Signatureglobal (India) shares have fallen nearly 12% in 2026 so far. The Gurugram-headquartered company specializes in affordable and mid-segment housing, especially in the Delhi-NCR region, which is emerging as the next key hub for the IT sector.

Oberoi Realty shares fell over 10% in 2026 so far. With a presence in Bengaluru, the company focuses on key areas in Mumbai.

Macrotech Developers (Lodha) shares declined 8% in 2026 so far. The company has a strong presence in Maharashtra and also key projects in Bengaluru. Sobha and Anant Raj shares fell over 4% each.

Concerns around the IT sector and a potential slowdown in job creation triggered a knee-jerk market reaction in the real estate sector, said Vinod Nair, Head of Research at Geojit Investments. “While any real impact on housing demand would unfold gradually, it could act as a near-term overhang,” he added.