When the Trump administration imposed a steep 26% tariff on Indian imports, the repercussions extended well beyond trade. Analysts quickly raised alarms about the potential for a US recession — a threat that could hit India where it hurts most: its tech-driven cities. As American companies rein in spending, Indian IT firms are grappling with slower project cycles and shrinking revenues. The impact is already visible, with the Nifty IT index plunging 9% this week — its biggest weekly drop in five years — sparking concerns that a downturn in the US could derail the ongoing recovery in technology spending.
Experts warn that India cannot remain immune to global economic shocks. Chartered accountant Paaras Gangwal highlighted on X (formerly Twitter) that a US recession may trigger a domino effect, especially in IT hubs like Bengaluru and Pune. He pointed out that the real estate boom in these cities has been fuelled by IT growth, making them vulnerable to global tech disruptions.
In a post on X (formerly Twitter), CA Paaras Gangwal wrote, “Bangalore, Pune Real Estate Market is linked with IT Sector. It is HOT because boom in the IT Sector in last 3-4 Year. Recession in USA may impact the Real Estate market of IT Cities too.”
Internet reacts
Opinions are sharply divided on the impact of a potential US recession on India’s real estate market, especially in IT-centric cities like Bengaluru and Pune. Some believe that property prices in India are resilient, pointing out that even during global crises like the 2008 financial crash and the 2020 pandemic, prices did not see steep declines like stock markets. They argue that assets like gold and real estate tend to appreciate over time and are not as volatile.
Others take a more cautionary stance, warning that the market may be on the verge of a correction. They see current economic indicators as signs of an impending fall, especially in light of the US tariff move. However, a sizable section remains confident that cities like Pune and Bengaluru will remain insulated, owing to demand from NRIs, buyers from Mumbai and other parts of India, and a steady influx of retirees and investors. Some also point to black money and speculative buying as reasons real estate remains detached from broader economic trends.
Bengaluru and Pune’s real estate
Bengaluru’s real estate market, long driven by a booming IT sector and high-paying tech jobs, is beginning to feel the pressure of global uncertainty. Layoffs, hiring freezes, and cautious sentiment—amplified by discussions on platforms like Reddit—have led many tech professionals to pause their property investment plans. Business Today reported that areas like Indiranagar, Koramangala and Whitefield have seen steep price hikes due to strong demand and limited supply, concerns are growing about the sustainability of this surge. Rising construction costs and shrinking affordable housing options have pushed prices beyond the reach of many middle-class buyers.
According to the Indian Express, realtors are seeing early signs of a slowdown. The tabloid noted a 15% dip in new launches, attributing it to market disturbances following U.S. President Donald Trump's talk of sanctions. It further added that many IT professionals are now adopting a wait-and-watch approach before committing to home purchases.
Experts warn that India cannot remain immune to global economic shocks. Chartered accountant Paaras Gangwal highlighted on X (formerly Twitter) that a US recession may trigger a domino effect, especially in IT hubs like Bengaluru and Pune. He pointed out that the real estate boom in these cities has been fuelled by IT growth, making them vulnerable to global tech disruptions.
In a post on X (formerly Twitter), CA Paaras Gangwal wrote, “Bangalore, Pune Real Estate Market is linked with IT Sector. It is HOT because boom in the IT Sector in last 3-4 Year. Recession in USA may impact the Real Estate market of IT Cities too.”
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
Internet reacts
Opinions are sharply divided on the impact of a potential US recession on India’s real estate market, especially in IT-centric cities like Bengaluru and Pune. Some believe that property prices in India are resilient, pointing out that even during global crises like the 2008 financial crash and the 2020 pandemic, prices did not see steep declines like stock markets. They argue that assets like gold and real estate tend to appreciate over time and are not as volatile.
Others take a more cautionary stance, warning that the market may be on the verge of a correction. They see current economic indicators as signs of an impending fall, especially in light of the US tariff move. However, a sizable section remains confident that cities like Pune and Bengaluru will remain insulated, owing to demand from NRIs, buyers from Mumbai and other parts of India, and a steady influx of retirees and investors. Some also point to black money and speculative buying as reasons real estate remains detached from broader economic trends.
Bengaluru and Pune’s real estate
Bengaluru’s real estate market, long driven by a booming IT sector and high-paying tech jobs, is beginning to feel the pressure of global uncertainty. Layoffs, hiring freezes, and cautious sentiment—amplified by discussions on platforms like Reddit—have led many tech professionals to pause their property investment plans. Business Today reported that areas like Indiranagar, Koramangala and Whitefield have seen steep price hikes due to strong demand and limited supply, concerns are growing about the sustainability of this surge. Rising construction costs and shrinking affordable housing options have pushed prices beyond the reach of many middle-class buyers.
According to the Indian Express, realtors are seeing early signs of a slowdown. The tabloid noted a 15% dip in new launches, attributing it to market disturbances following U.S. President Donald Trump's talk of sanctions. It further added that many IT professionals are now adopting a wait-and-watch approach before committing to home purchases.
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