Will Trump's tariffs rollout impact real estate growth in India’s tech cities like Bengaluru and Pune? Netizens weigh In
The US tariff war is likely to impact real estate markets in Bengaluru and Pune fueled by growth in the tech sector, a CA has warned on X
US president Donald Trump's tariffs on imports have sparked a trade war. A chartered accountant has warned on X that it could trigger a recession in America, potentially affecting property sales in India's tech cities like Bengaluru and Pune, where real estate growth is closely linked to the rise of the IT sector.
Fears of reduced American spending, slower project cycles in tech firms, and rising job uncertainties have led many potential buyers to adopt a wait-and-watch approach, which may lead to a slowdown in property sales, say netizens.
A chartered accountant has warned on X that a potential recession in the U.S. could have an immediate impact on Bengaluru and Pune—cities heavily reliant on the IT boom. Netizens have raised concerns that the real estate price appreciation in these cities may be short-lived, as potential buyers from the IT sector are taking a more cautious stance due to fears over job security and financial stability.
Chartered accountant Paaras Gangwal said on X that “Bangalore, Pune Real Estate Market is linked with IT Sector. It is HOT because boom in IT Sector in last 3-4 Year. Recession in USA may impact Real Estate market of IT Cities too.”
India’s tech sector relies heavily on the U.S., so when American companies cut back on spending, Indian IT firms begin to feel the strain. Projects slow down, earnings dip and jobs are at risk. According to netizens, in cities like Bengaluru and Pune, this could lead to a broader issue — a slowdown in the housing market.
The trend is shifting in Bengaluru, where areas like Indiranagar, Koramangala, and Whitefield saw property prices surge in recent years. Over 50,000 tech workers reportedly lost their jobs in 2024, and major firms have scaled back hiring. This is already impacting housing demand.
Also Read: Housing sales in Q1 2025 set to drop 23% amid high prices and geopolitical uncertainty
The rise of automation and artificial intelligence is also contributing to uncertainty. As companies rely more on machines and fewer on people, job security is declining. As a result, potential homebuyers are becoming more cautious and hesitant to make big financial decisions, netizens said.
Pune is experiencing similar trends, with rising job concerns leading many potential buyers to hold off on purchasing property. This cautious sentiment has slowed property sales in the city.
Also Read: Bengaluru and Delhi-NCR housing sales dip amid price hikes and job worries
The takeaway is clear: as highlighted in a recent X post, decisions made in the U.S. can directly impact cities in India. With the tech industry undergoing shifts and global dynamics evolving, the real estate market in India’s IT hubs is entering a critical phase.
Here's what consultancy reports have to say
A report by Knight Frank showed that employment uncertainties and rising prices have disrupted the real estate market, leading to a decline in housing sales. It said that Bengaluru’s housing sales dropped 5% to 12,504 units between January and March 2025.
Housing sales across nine cities are projected to decline by at least 23%, with supply falling by 34% in the first quarter of 2025 (January to March). This decline is attributed to subdued demand, driven by high real estate prices and a cautious approach from investors amid ongoing geopolitical developments, according to a report by data analytics firm PropEquity.
