BENGALURU: Despite ongoing global tensions, Bengaluru’s real estate market remains stable. Although investor sentiment has been affected, particularly among overseas buyers, there hasn’t been a notable decline in demand. Experts attribute this resilience to local factors, such as job growth, infrastructure improvements, and consistent homebuyer interest.
“The demand from Middle Eastern investors has dropped by nearly 50% since unrest escalated, but we expect it to stabilize and potentially rise again. Even with a boost in property sales in the UAE, Indian properties are not facing distress sales. Given that returns on Dubai properties may stagnate, the robust growth in India may attract more investments, reminiscent of trends during the pandemic,” stated Saurabh Garg, co-founder and CBO of NoBroker.
Priyanka Raju, director of Kalyani Developers, pointed out that Bengaluru’s housing market isn’t experiencing any immediate slowdowns. “Recent global conflicts, including those in the Middle East, haven’t impacted demand in Bengaluru. In fact, a recent study showed 61,000 new residential units launched in 2025, with sales remaining steady despite global uncertainties. The city’s housing market thrives on local factors, including the IT sector’s growth, infrastructure enhancements, and increased urban migration. While some investors remain cautious due to global issues, the demand for residential homes in Bengaluru is stable.”
Discussing evolving investment trends, she noted a shift. “NRI buyers from the Middle East are increasingly attracted to Bengaluru’s residential projects as safe investments. Geopolitical tensions often prompt NRIs to diversify assets, making Indian real estate—especially in Bengaluru—appealing due to strong rental returns and long-term appreciation. Conversely, foreign institutional investors are taking a more cautious stance, waiting for clarity on global economic conditions before making significant investments.”
Nesara BS, chairman of Concorde, described the situation as cautiously stable. “Geopolitical issues, particularly in the Middle East, have instilled a degree of caution in global markets. We are observing some effects in Bengaluru, but they are limited. Demand from end-users remains robust, supported by the city’s strong economic foundation, particularly in technology, steady job growth, and ongoing urban migration. These factors have helped maintain buyer sentiment despite external challenges.”
On construction challenges, Nesara highlighted supply-related pressures. “The effects are more pronounced on the supply side, with rising costs for inputs like steel, cement, and logistics due to disruptions in global supply chains and higher fuel prices. Additionally, there are occasional labor shortages that could impact project timelines, as well as localized disruptions in sourcing specific materials like fittings and ceramics.
Yet, developers are proactively addressing these risks with advanced procurement strategies, robust vendor partnerships, and greater mechanization.”
“From a measurable perspective, construction costs have risen by approximately 5 to 10 percent in key areas, while demand stays stable. However, we’ve noticed a slight slowdown in transaction rates in certain micro-markets. These trends are cyclical and do not suggest an overall weakening in demand,” he concluded.
