Ceasefire Sparks Hope for Real Estate Recovery as Buyers Remain Cautious

Ceasefire Brings a Ray of Hope to India’s Real Estate Sector

After weeks of heightened tensions between India and Pakistan, the recent ceasefire has come as a breath of fresh air for the Indian real estate market. The sector, which had been reeling from a sharp decline in buyer enquiries and site visits, is now cautiously optimistic about a revival. The Pahalgam terror attack and subsequent military escalation had cast a long shadow, leading to a 15% to 40% drop in property interest across major metros like Delhi, Mumbai, Bengaluru, and Pune. Brokers and developers reported that buyers, wary of making large financial commitments in uncertain times, had adopted a wait-and-watch approach.

Buyer Sentiment: From Uncertainty to Cautious Optimism

Amit Agarwal, CEO of proptech unicorn NoBroker, observed a clear dip in both enquiries and property visits since the tensions began. “People have become a bit cautious, especially since it is a large-ticket purchase. They are waiting for a bit more clarity to emerge,” he said. In South Delhi, one of the country’s most premium residential markets, walk-ins and calls dropped by nearly 40% in just ten days. For many, the decision to postpone wasn’t just about finances but also psychological comfort and stability.

Real Stories: Families Hit Pause

The uncertainty was felt on the ground. Srestha S, a Bengaluru-based entrepreneur, and her husband, an IT professional, were on the verge of buying their dream home but decided to put their plans on hold after the border tensions. “We decided we would rather play it safe for now than be stuck with big EMIs later,” Srestha shared. Even after the ceasefire, they remain cautious, preferring to wait for sustained peace. Another couple in Gurgaon echoed similar sentiments, pausing their second home purchase in hopes that a tighter market might even yield better deals.

Emotional and Economic Impact

The conflict’s escalation into open military engagement along the Line of Control created more than just financial jitters-it triggered a deep emotional response among both end-users and investors. Sumanth Reddy, chairman of the National Association of Realtors – India (NAR-India), confirmed a spike in cancellations, deferred site visits, and cold leads. “Clients are telling me, ‘Let us talk after things settle down.’ The existing investors are also worried about their investment,” he noted. Even rental and corporate leasing markets began to stall as companies delayed expansion decisions.

Market Fundamentals Remain Strong

Despite the recent turbulence, industry leaders remain confident in the sector’s resilience. Bhavesh Kothari, Founder and CEO of Property First, believes that India’s strong economy and pent-up demand will drive real estate growth in the coming years, especially as alternative investments like equities and gold are already at their peaks. Recent data from Knight Frank shows that 88,274 residential units were sold across eight major cities in Q1 2025, marking a 2% year-on-year rise. Pune and Chennai led the surge, with 20% and 10% growth respectively, while Mumbai saw a 5% increase in sales. New launches outpaced demand for the tenth straight quarter, with Bengaluru seeing the highest launch growth at 26% year-on-year.

Looking Ahead: Stability as the Catalyst

The ceasefire has injected fresh hope into the real estate sector, but most buyers are still in a wait-and-watch mode. If peace holds and stability returns, experts expect a swift rebound in both demand and site visits. Historically, Indian real estate has shown resilience in the face of political and economic upheaval, and this time may be no different. For now, the industry is watching closely, ready to welcome back buyers as confidence gradually returns.