India-Pakistan ceasefire brings hope for real estate revival amid slump in buyer sentiment

The ceasefire between India and Pakistan comes as a relief for the real estate sector which saw a clear dip in enquiries amid escalating tensions between the two countries since the Pahalgam terror attack last month - though, for now, buyers are still in wait-and-watch mode.

From Delhi and Mumbai to Bengaluru and Pune, site traffic across Indian metros had dropped anywhere between 15% to 40%, brokers told ET.

“There’s been a dip of around 15% in terms of both enquiries and property buying visits since the India–Pakistan tensions escalated,” said Amit Agarwal, chief executive of proptech unicorn NoBroker. “People have become a bit cautious, especially since it is a large-ticket purchase. They are waiting for a bit more clarity to emerge.”

“If the situation stabilises and continues in a normal vein, we should see interest coming back,” he said.

In South Delhi, one of the poshest premium residential markets in the country, walk-ins and calls have seen almost a 40% drop in the last ten days, said a broker who did not wish to be named. “People are a little wary about making big decisions right now. It is not just about money but about psychological comfort,” the person said.

Some customers confirmed this.



Bengaluru-based Srestha S, who runs a small food business from her apartment, and her husband, an IT professional, were in advanced discussions to buy a flat after months of property hunting. They put their plans on hold amid rising border tensions after the Pahalgam terror strike.

“We decided we would rather play it safe for now than be stuck with big EMIs later,” Srestha said, adding that they would still wait a while despite the ceasefire announcement.

Another couple working in consulting in Gurgaon also said they have hit pause on their move to buy a second flat. “If the market tightens, we might be able to get the same properties at a discount. Better to wait,” they said.

The conflict, which escalated into open military engagement along the Line of Control two weeks ago, had begun to weigh on real estate sentiment. While Indian property markets have shown resilience during political or economic upheavals in the past, the situation, marked by the unpredictability of war, triggered a more pronounced emotional response from both end-users and investors.

Sumanth Reddy, chairman of National Association of Realtors – India (NAR-India), the apex body representing RERA-registered and licensed real estate professionals across India, confirmed a higher rate of cancellations, deferred site visits, and cold leads.

“Clients are telling me, ‘Let us talk after things settle down.’,” Reddy said. “The existing investors are also worried about their investment.”

Rental markets, too, had started showing early signs of stalling, with corporate leasing discussions slowing down.

Now with the ceasefire, the industry can hope for a revival in the coming weeks. “The Indian economy is strong, and real estate demand will continue at a good pace for the next few years since equities and gold are already at their peak,” said Bhavesh Kothari, Founder and CEO, Property First.

According to a recent report by Knight Frank, as many as 88,274 residential units were sold across eight major cities in the January to March period this year, leading to a 2% YoY increase in consumer demand, with Pune and Chennai leading the primary sales volume with 20% and 10% YoY growth, respectively.

Among the eight cities, housing sales in Mumbai rose 5% to 24,930 units. Pune saw a 20% increase in sales to 14,231 units, while Chennai witnessed a 10% growth to 4,357 units. However, Delhi-NCR sales fell 8% to 14,248 units. Supply of new units outpaced demand for the tenth consecutive quarter, with 96,309 units launched in Q1 2025, reflecting a 3% YoY increase. Bengaluru saw the highest launch growth at 26% YoY, it mentioned.