Why Real Estate in Bengaluru and Hyderabad Thrives While Mumbai and NCR Struggle
A recent report by Antique Stock Broking reveals divergent real estate trends across Indian metros, with Bengaluru, Hyderabad, and Pune showing strong demand, while Mumbai and NCR face a slowdown.
Real EstateBengaluruHyderabadMumbaiNcrReal Estate PuneSep 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 driving the real estate boom in Bengaluru and Hyderabad. Despite IT layoffs, these cities continue to see strong absorption rates, particularly in projects below Rs 2 crore and above Rs 2 crore.
Why is the real estate market in Mumbai and NCR experiencing a slowdown?
The real estate market in Mumbai and NCR is experiencing a slowdown due to muted demand, low conversion rates, and a preference for ready-to-move-in inventory. New project launches have also slowed down in these regions.
How are IT layoffs affecting the real estate market in major cities?
IT layoffs are posing a downside risk to the real estate market, particularly in IT hubs like Bengaluru and Hyderabad. However, these cities are still seeing strong absorption rates, while other regions like Mumbai and NCR are more affected.
Which cities are expected to see strong demand in the real estate sector?
Bengaluru, Hyderabad, and Pune are expected to see strong demand in the real estate sector, with good absorption rates across different ticket sizes. Reputed developers like Godrej continue to see positive responses in these cities.
What is the outlook for real estate in Gurugram and Noida?
The real estate boom in Gurugram has subsided, and only big players like DLF and Oberoi Reality may see steady demand in large ticket sizes. In contrast, Noida is expected to remain strong, with demand exceeding supply in the city.
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