Why Bengaluru and Hyderabad Real Estate Markets are Booming While Mumbai and NCR Lag Behind
Explore the divergent trends in India's real estate market, where IT hubs like Bengaluru and Hyderabad are experiencing robust growth, while Mumbai and the National Capital Region (NCR) face a slowdown.
Real EstateBengaluruHyderabadMumbaiNcrReal Estate NewsSep 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 factors are driving the real estate boom in Bengaluru and Hyderabad?
Lower interest rates, inflation, and income tax breaks are key factors. Additionally, these cities have a strong IT sector, which continues to attract investment and buyers despite layoffs.
The Mumbai Metropolitan Region (MMR) is experiencing muted demand and low conversion rates. While footfall remains steady, customers prefer ready-to-move-in inventory, and new project launches have slowed down.
Answer not available
How are smaller real estate companies performing in the NCR?
Smaller real estate companies in the NCR are expected to see a muted demand in large ticket sizes. Only big players like DLF and Oberoi Reality may see steady demand.
What is the current outlook for real estate in Gurugram?
The real estate boom in Gurugram has subsided in recent years. However, demand in the Rs 2 crore to Rs 4 crore ticket size is expected to remain strong.
Why is the real estate market in Noida performing well?
Noida's real estate market is strong, with demand exceeding supply. This is due to its strategic location and the growing preference for ready-to-move-in properties.
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