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Hyderabad Real Estate Faces Slowdown Amid IT Sector Layoffs Impact

1st August 2025

4 Min Read

Hyderabad Real Estate

The Changing Tide: Hyderabad’s Real Estate and IT Sector Challenges

The once booming real estate market in Hyderabad, greatly driven by a thriving IT workforce, is now navigating uncertain waters. Recent layoffs in the IT sector have cast a shadow on buyer confidence, slowing down new bookings and site visits. The market’s pulse is visibly restrained as buyers adopt a cautious stance amid financial uncertainty. Data from Deccan Chronicle highlights this market shift, signaling a pause in Hyderabad’s property momentum.

Buyer Hesitation and Market Response

While prices have so far remained steady, many prospective homebuyers—particularly salaried IT professionals—are delaying decisions. Experts note a significant drop in new bookings and site visits for 2BHK and 3BHK apartments priced between ₹70 lakh and ₹1.5 crore. Builders have begun recalibrating pricing strategies to address this decreased demand. Cresco Housing Projects CEO Chalam C.S. and RK Builders’ V. Gowtham report a clear wait-and-watch approach dominant among buyers, reflecting broader market caution.

Payment Delays and Shifting Buyer Preferences

Though cancellations remain limited, payment delays are increasingly common as buyers hold off on financial commitments. The mid- to premium-housing segments are particularly affected, with first-time tech-sector buyers showing hesitation. Developers observe a rising preference for smaller units among middle-income buyers, while luxury segments see minimal activity. As per insights from Realtor Oxygen CEO Dr. Nandi Rameswara Rao, sales have dipped by 15-20% since the layoffs began, accompanied by a 5% cancellation rate.

Impact Extends to NRI and Investor Segments

Interest from Non-Resident Indians (NRIs), once a reliable driver of Hyderabad’s realty, has also waned. Many are postponing purchases as they await market stabilization, adding another dimension to the current slowdown. Industry watchers warn that continued IT sector instability could deepen the real estate market’s challenges, especially in a city where technology jobs and property demand are closely linked.

Outlook: Cautious Optimism Amid Sector Adjustment

The final trajectory of Hyderabad’s real estate market will depend significantly on the IT job market's recovery. Builders and sellers are adapting to changing consumer sentiment, with flexible pricing and more attention to mid-tier homebuyers. While the current scenario invites caution, Hyderabad’s robust infrastructure and long-term growth potential keep hope alive for market revival.

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