Bengaluru and Pune Real Estate Might Take a Hit Thanks to Trump’s New Tariffs
So here’s the deal the Trump administration slapped a hefty 26% tariff on Indian imports, and now there’s growing fear it could push the U.S. into a recession. Why should India care? Well, it might hit us where it really hurts: the IT sector. And since cities like Bengaluru and Pune are major tech hubs, that could spell trouble for their real estate markets too.
This past week, the Nifty IT index dropped a steep 9% the biggest weekly fall in five years which has everyone worried. With American companies slowing down spending, Indian IT companies are already feeling the pinch with fewer projects and tighter budgets.
Chartered accountant Paaras Gangwal posted on X (formerly Twitter) that a recession in the U.S. could have a domino effect, especially on cities like Bengaluru and Pune. Their property boom over the past few years has been driven largely by the IT boom, so if tech slows down, the housing market could too.
Opinions are split. Some people believe that real estate in India tends to stay strong, even during global crises like the 2008 crash or the pandemic. They say property and gold are long-term assets that usually hold or gain value over time.
But others are more cautious. They think a market correction might be coming, especially with the new U.S. tariffs in play. Still, there’s confidence from some quarters that these cities will stay in demand thanks to NRIs, investors from Mumbai and beyond, retirees, and even those putting black money into real estate.
On the ground in Bengaluru, there’s already a bit of a slowdown. Layoffs and hiring freezes in tech have made many professionals rethink buying homes. Popular areas like Indiranagar, Koramangala, and Whitefield have seen crazy price jumps, but now folks are wondering how long that can last. Construction costs are going up, and affordable housing is getting scarce, pushing prices beyond what most middle-class buyers can afford.
Reports also show a 15% dip in new housing launches possibly a direct result of market jitters after Trump’s tariff news. Realtors say a lot of IT folks are now just waiting and watching before they commit to buying property.
So yeah, the real estate party in Bengaluru and Pune might be slowing down all thanks to some big moves across the ocean.
CA Sounds Alarm: Trump’s Tariffs Could Shake Up Property Prices in India’s IT Hubs
