Bengaluru's Real Estate Market Stays Resilient Amid Global Tensions
Even as global tensions continue to create uncertainty, Bengaluru’s real estate market has remained largely stable. While there has been some impact on investor sentiment, particularly from overseas buyers, the city has not seen any major slowdown in demand. Industry experts say strong local factors such as job growth, infrastructure development, and steady homebuyer demand are helping the market stay resilient despite global challenges.
However, there has been limited impact. “Since the onset of unrest in the region, demand from Middle Eastern investors has fallen by approximately 50%. We anticipate that demand from Middle Eastern NRIs will normalise and eventually increase. While there has been an increase in the selling of UAE-based properties, we have not observed any signs of distress selling regarding Indian properties. Given that local Dubai properties may not yield higher returns in the coming years, the strong growth in the Indian market is likely to attract more investment. This mirrors a similar trend we observed during the pandemic,” said Saurabh Garg, co-founder and CBO of NoBroker.
Priyanka Raju, director of Kalyani Developers, noted that Bengaluru’s housing market has not witnessed any immediate slowdown. “Global conflicts, including recent tensions in the Middle East, have not caused any immediate slowdown in Bengaluru’s real estate demand. A recent study shows that Bengaluru recorded 61,000 new residential unit launches in 2025, with sales volumes holding firm even amid global uncertainty. The city’s housing market continues to be driven by local fundamentals such as IT sector growth, GCCs, infrastructure expansion, and rising urban migration. While global uncertainty does create caution among some investors, end-user demand for homes in Bengaluru remains resilient and steady.”
On evolving investment patterns, she highlighted a nuanced shift. “We have observed that NRI buyers, particularly from the Middle East, are showing greater interest in Bengaluru’s residential projects as a safe and stable investment option. Geopolitical tensions often push NRIs to diversify their assets, and Indian real estate, especially Bengaluru, remains attractive due to strong rental yields and long-term appreciation. Foreign institutional investors, however, are adopting a more cautious approach, waiting for clarity on global economic trends before committing to large-scale investments.”
Meanwhile, Nesara BS, chairman of Concorde, described the situation as one of cautious stability. “Geopolitical tensions, including those in the Middle East, have introduced a degree of caution across global markets. In Bengaluru, we are seeing some of these ripple effects, but they remain limited in nature. End-user demand continues to be resilient, supported by the city’s strong economic fundamentals, particularly its technology-led growth, steady job creation, and sustained urban migration. These underlying drivers have ensured that buyer sentiment remains stable despite external uncertainties.”
On construction challenges, Nesara pointed out supply-side pressures. “The impact is more pronounced on the supply side. We are seeing upward pressure on input costs, particularly steel, cement, and logistics, driven by global supply chain disruptions and higher fuel prices. There are also intermittent challenges related to labour availability, which can affect execution timelines in certain cases. Additionally, localised disruptions in sourcing specific materials such as fittings and ceramics have been observed.
However, developers are actively mitigating these risks through advanced procurement strategies, stronger vendor partnerships, and increased adoption of mechanisation.” “From a measurable standpoint, construction costs have seen an increase in the range of 5 to 10 percent across key inputs and labour. While demand remains stable, there has been some moderation in transaction velocity in select micro-markets. These trends are cyclical in nature and do not indicate any structural weakening of demand,” he added.
