West Asia Conflict and IT Layoffs Impact Housing Demand in Major Cities

The West Asia conflict, layoffs in the IT sector, and sustained price increases are beginning to weigh on residential property demand, with developers and consultants reporting a visible slowdown in buyer activity across key cities.

Walk-ins and enquiries have declined as prospective buyers defer purchase decisions amid heightened uncertainty. Enquiries have dropped 10–15% in several markets, with the National Capital Region seeing a sharper fall of 30–40%, according to Sarthak Seth, head of sales and marketing at Tata Realty & Infrastructure.

Sales had slowed even before the West Asia conflict. After the war, along with AI-led disruption, dollar and inflation concerns, only end-users and seasoned investors are active, Seth said. The premium and luxury segments remain relatively resilient.

Prashant Thakur, executive director and head of research and advisory at Anarock Property Consultants, said sentiment has weakened. Buyers are not taking calls due to uncertainties such as IT layoffs and the West Asia conflict. Everybody is on hold till conditions stabilise, he noted.

Developers are also facing constraints on pricing and supply. Thakur said companies are finding it difficult to raise prices despite higher costs and are holding back large project launches in a weak demand environment.

After four years of strong sales and price increases, developers acknowledge demand is cooling. Sentiments have changed. After a boom, some fatigue has set in. Prices had gone up, so there is some softness, said Sunil Pareek, executive director at Assetz, adding that it is difficult to attribute the slowdown to any single factor.

Residential prices have risen sharply over the past few years, with values in Noida and Gurugram estimated to have trebled and those in Hyderabad roughly doubling, according to industry estimates.

Maneesh Yadav, a real estate fund manager, said deal closures are taking longer, with negotiations stretching to five or six meetings from three to four earlier. Schemes are back in demand, he said, pointing to the return of flexible payment plans, EMI subvention schemes, and discounts.

Developers, who had raised prices over the past two quarters, are now offering discounts of 10–15% on under-construction projects. Non-resident Indian buyers are also negotiating harder, he added.

In a recent move, the Maharashtra government kept ready reckoner rates unchanged, a decision industry executives said reflects the softer market conditions.

Data from Anarock shows housing sales across the top seven cities fell 7% sequentially in the March quarter of 2026 to about 101,675 units worth Rs 1.51 lakh crore, compared with 108,970 units worth Rs 1.60 lakh crore in the preceding quarter.

Rating agency Crisil has projected a 5–7% moderation in sales growth in FY26, citing stagnant demand amid elevated prices and delayed launches. Icra estimates average selling prices, which rose about 15% in FY25, could increase by 6–8% in FY26, with further moderation expected thereafter due to the high base.