Why Bengaluru and Hyderabad Are Thriving in the Real Estate Market While Mumbai and NCR Lag
A recent report by Antique Stock Broking reveals that while Bengaluru, Pune, and Hyderabad are experiencing robust real estate demand, Mumbai and the National Capital Region (NCR) are seeing a slowdown. Explore the factors driving these trends and the outlook for the future.
Real EstateBengaluruHyderabadMumbaiNcrReal EstateSep 08, 2025
They highlighted that though there are some common driving forces across the regions, they impact different regions differently. Markets like Bengaluru, Pune, and Hyderabad show good absorption, while other regions like Mumbai and NCR face a slowdown in demand.
According to Antique, factors such as lower interest rates and inflation, as well as income tax breaks, are encouraging factors, but trade, tariff uncertainty, and IT sector layoffs pose a downside risk. Here is the region-wise breakup of real estate demand:
Bengaluru, Hyderabad, and Pune Outperform
According to Antique Stock Broking, despite the IT layoffs, the absorption rate in Bengaluru exceeded expectations. While the ticket size below Rs 2 crore saw good growth traction, the ticket size above Rs 2 crore was also buzzing with a reasonably good absorption rate in Garden City.
Similarly, Pune and Hyderabad also saw a strong absorption in both ticket sizes. As per Antique’s study, reputed group A players like Godrej continue to see good response to their newly launched projects in these cities.
Mumbai Real Estate Sector Sees Low Conversion Rate
On the demand situation in Mumbai, the report stated that the Mumbai Metropolitan Region (MMR) is currently seeing muted demand. The new project launches have also slowed down in the region. Further, the report added that though the footfall remains steady, conversion is significantly low. Some projects with the right location and pricing are seeing better traction.
While the new launches in MMR were expected to pick up in the second half of the year, Q2 absorption remains slow due to customer preference for ready-to-move-in inventory. The report suggests that absorption and new launches will be much better in MMR in Q3 FY26.
Delhi NCR Real Estate Outlook
The Antique Stock Broking report pointed out that the real estate boom in Gurugram has subsided in the last few years. Apart from that, only some big players like DLF and Oberoi Reality may see steady demand, as per their report. They predict that other smaller real estate companies will see a muted demand in large ticket sizes.
The report says that real estate demand in Gurugram, with a ticket size of Rs 2 crore to Rs 4 crore, is expected to remain on the stronger side. On the other hand, the market in Noida is expected to remain strong, with demand exceeding supply in the city.
Frequently Asked Questions
What are the main factors driving real estate demand in Bengaluru and Hyderabad?
The main factors driving real estate demand in Bengaluru and Hyderabad include lower interest rates, income tax breaks, and the continued growth of the IT sector, despite recent layoffs. These cities also benefit from strong absorption rates across various ticket sizes.
Why is the real estate market in Mumbai experiencing a slowdown?
The real estate market in Mumbai is experiencing a slowdown due to low conversion rates, despite steady footfall. Customers are preferring ready-to-move-in inventory, and new project launches have slowed down in the Mumbai Metropolitan Region (MMR).
What is the outlook for the real estate market in Gurugram?
The real estate boom in Gurugram has subsided, and only big players like DLF and Oberoi Reality are expected to see steady demand. The market for large ticket sizes (Rs 2 crore to Rs 4 crore) is expected to remain strong, but smaller real estate companies will face challenges.
How is the real estate market in Noida performing?
The real estate market in Noida is performing well, with demand exceeding supply. The market is expected to remain strong, making it an attractive location for buyers and investors.
What role do interest rates and tax breaks play in the real estate market?
Lower interest rates and income tax breaks are significant factors that encourage real estate demand. These financial incentives make it more affordable for buyers to invest in property, thus boosting the overall market.
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