Pune Housing Market Likely To Feel The Heat As US Recession, IT Slowdown Shakes Real Estate Stability
Pune Housing Market Likely To Feel The Heat As US Recession, IT Slowdown Shakes Real Estate Stability
The aftershocks of a global economic tug-of-war are beginning to hit home — quite literally — in India’s tech-driven cities. Amid fears of a US recession triggered by steep tariffs on Indian imports, Pune’s housing sector is facing a visible slowdown, mirroring similar trends in Bengaluru.
According to a report by data analytics firm PropEquity, India’s housing market slumped in the first quarter of 2025, registering a 23% drop in home sales and a 34% decline in new supply across major cities. Pune, which has long ridden the wave of IT-led growth, saw a sharp 33% fall in property sales during this period.
The slowdown comes on the heels of escalating economic uncertainty, stemming largely from US President Donald Trump’s 26% tariff imposition on Indian goods. Chartered Accountant Paaras Gangwal flagged the issue in a post on X (formerly Twitter), warning that cities like Pune and Bengaluru, whose real estate boomed in sync with IT sector growth, could face severe pressure if a US recession materializes.
Banglore , Pune Real Estate Market is linked with IT Sector
— CA Paaras Gangwal (@ThetaVegaCap) April 4, 2025
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#US #Recession
“Bangalore, Pune Real Estate Market is linked with IT Sector. It is HOT because of the boom in IT Sector in the last 3-4 years. Recession in USA may impact Real Estate market of IT Cities too,” Gangwal posted.
The real estate markets in both Bengaluru and Pune, historically propped up by demand from IT professionals, are cooling down amid widespread layoffs and shrinking job opportunities. Over 50,000 IT professionals lost their jobs in Bengaluru in 2024, leading to a fall in housing demand. Meanwhile, Pune is seeing cautious homebuying behavior, with IT employees holding back on major investments amid concerns over job security and the future of tech employment.
While Bengaluru stood out as the only major city to show a 10% increase in housing sales during Q1 2025, accounting for 17% of total sales across top cities, other metros faced significant declines. Hyderabad saw the steepest fall at 47%, followed by Mumbai (36%), Pune (33%), Kolkata (28%), and Thane (27%). Chennai posted only a minor drop of 2%, while Navi Mumbai dipped by 7%.
The slowdown is seen as a broader sign of the vulnerability of India’s housing markets to global economic currents and the health of the IT industry, which remains a key driver in cities like Pune.
As automation and AI continue to reshape job dynamics and the US teeters on the edge of a recession, stakeholders are bracing for more tremors in the months ahead.
