The repercussions of the tariff warfare: It seems that the alert is on the Bengaluru, and a retreat of a residential bonnia linked to the American stagnation and its slowdown.

When the US administration slapped President Donald Trump’s 26 % tariff on Indian imports, the effects of ripple were not limited to commercial standards. Analysts soon reported a greater threat: a possible American recession. For India, anxiety exceeds the total economy-it is related to jobs and real estate and the pulse of its technology-based cities. With American companies tightening spending, Indian information technology companies face a slower project and reducing revenue. And when the IT engine penetrates, cities such as Bangaluru and Bon-which were built on the growth adopted in technology-begin to feel shakes.

Noting the possible impact that it is repercussions of the recent tariff war for US President Donald Trump, one of the legal accountants warned that the recession in the United States may lead to the impact of domino on the real estate sector in information technology cities such as Bangaluru and Funi.

In a publication on X (previously Twitter), Ca Paaras Gangwal, “Bangalore, real estate market is linked to the information technology sector. It’s hot because a boom in the IT sector in the past 3-4 years. The recession in the United States of America may affect the real estate market in information technology cities as well.”

Real estate prices in Bangalore have increased significantly in recent years, driven by economic growth, the prosperous information technology sector, and the flow of professionals from all over the country. The main sites such as Indiranagar, Korasanga, and Whitefield have witnessed a sharp rise in prices due to high demand and the availability of limited lands. However, fears are rising that this rapid estimate may not be sustainable.

Real estate markets in Bangaluru and Bon, traditionally moved through strong demand from IT professionals, are slowing down amid workers’ layoffs in recent times and slowing employment in the technology sector. In Bangaluru, more than 50,000 information technology employees were discharged in 2024, which led to a significant shrinkage in the demand for housing. This trend is more exacerbated by the rise of artificial intelligence and automation, which has reshaped job dynamics and increased uncertainty in employment.

Likewise, the real estate sector in Bonn is witnessing a wide demand, as potential home buyers of the IT industry adopt a cautious approach due to concerns about job security and economic stability. As a result, both cities monitor a slowdown in property transactions, which reflects the broader influence of the IT sector challenges on housing markets.

The housing market in India continued to struggle in the first quarter of 2025, with a 23 % decrease in sales by 23 % and a decrease in 34 % in new housing supplies, according to a report issued by Propequity, a NSE data analysis company. The report revealed that housing sales throughout the 9 cities in India amounted to 1,05,791 units in the first quarter of 2025, a sharp decrease of 1,36,702 units during the same period in 2024. While Bangaluru and Delhi-NCR were exceptions from this declining trend, the remaining cities face a noticeable decrease in both sales and supply.

Bengaluru emerged as the best performance, and witnessed a 10 % increase in housing sales with 18,508 units that were sold in the first quarter of 2025 compared to 16,768 units in the same period last year. The city constituted 17 % of total sales in the first quarter of 2025, an increase of 12 % in the first quarter of 2024.

Hyderabad witnessed the decrease in the most important sales, as it decreased by 47 %, followed by Mumbai by 36 %, Bonnie by 33 %, 28 % Colkata, Thin by 27 %, and Navi Mumbai by 7 %. Chennai saw a smaller decrease of 2 %.