Is Your Bengaluru/Pune Real Estate Bet Safe? CA Warns Trump’s Tariffs Could Change Things
The real estate markets of Bengaluru and Pune — long seen as safe bets for investors — might be entering a risky zone. And the reason, surprisingly, lies thousands of miles away in Washington DC.
When the US President Donald Trump slapped a hefty 26% tariff on Indian imports, the immediate conversation centered around trade and exports. But experts are now warning that the ripple effects could hit much closer to home — quite literally — for residents of India’s IT powerhouses.
Why IT Slowdown = Real Estate Jitters
For years, Bengaluru and Pune have ridden the wave of a booming IT sector. High-paying tech jobs fuelled demand for premium housing, and developers cashed in big. But with fears of a US recession looming, thanks to rising tariffs, that party might be slowing down.
Chartered Accountant Paaras Gangwal, having over 59K followers on X, sounded the alarm on social media, pointing out that these cities are particularly vulnerable because their property markets are deeply tied to the health of the IT industry.
“Bangalore, Pune Real Estate Market is linked with IT Sector. It is HOT because boom in the IT Sector in last 3-4 Years. Recession in USA may impact the Real Estate market of IT Cities too,” Gangwal posted on X (formerly Twitter).
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
The Divide: Will Property Prices Fall?
Not everyone agrees with the doomsday predictions.
Some believe that Indian real estate, particularly in cities like Bengaluru and Pune, has historically weathered global crises without major price crashes. They argue that real estate, like gold, is a long-term asset and tends to hold its value better than volatile stock markets.
But others are not so sure.
With the Nifty IT index falling 9% in a single week — the biggest weekly drop in five years — concerns are rising. Analysts warn that if US tech spending continues to tighten, layoffs, hiring freezes, and project delays in Indian IT firms will directly hurt buying sentiment in these cities.
Early Signs of Slowdown?
Ground reports suggest that the winds might already be changing. According to Indian Express, new property launches in Bengaluru have dropped by 15%, as developers tread cautiously amidst economic uncertainty. Business Today highlighted that in popular areas like Indiranagar, Koramangala, and Whitefield, price hikes are continuing — but so are buyer concerns about affordability.
Many IT professionals are reportedly adopting a “wait and watch” approach, holding back from new home purchases until the global outlook clears up.
Still Some Factors Holding Up the Market
Despite the gloom, not everyone is ready to write off these property markets. Demand from NRIs, investors from Mumbai and other parts of India, as well as speculative buying, continue to keep prices buoyant in certain pockets.
And let’s not forget the unique nature of the Indian real estate market — black money transactions, emotional buying, and investment-driven purchases often make it behave differently from textbook economic models.
The Bottom Line
Whether Bengaluru and Pune’s property prices will correct sharply or merely cool off remains to be seen. But one thing is clear — global headlines are now casting a long shadow over India’s IT-driven real estate hotspots. For homebuyers and investors, caution may just be the new keyword.
