India’s real estate sector is showing mixed signals across key markets, with Gurugram’s high-ticket demand cooling, Noida holding steady amid supply shortages, and Bengaluru and Pune surprising with strong absorption despite IT headwinds.

A recent report by Antique Stock Broking Limited highlights shifting buyer preferences, developers’ strategies, and macroeconomic tailwinds that are shaping the sector’s outlook.

According to the report, Gurugram’s real estate boom appears to be cooling off, with demand softening in high-ticket segments, though interest remains strong in the Rs 2-4 crore range. Developers are increasingly offering steep discounts to serious buyers. Reputed developers, however, are unlikely to face much challenge, the report added.

Meanwhile, in Noida, demand remains steady as the market continues to grapple with a supply shortage, the report added.

The report further added that buoyed by strong balance sheets and a focus on boosting pre-sales, competition for project acquisitions is intense. Many players vying for opportunities and pushing up valuations–particularly for redevelopment projects in MMR and those in Gurugram.

While this is likely to put pressure on profit margins, companies with a healthy pipeline of ongoing projects over the next few years could find themselves in a favourable position, the report added.

Outside the north region, July and August real estate absorption in Bengaluru was very encouraging, contrary to expectations of muted absorption on the back of IT job lay-offs.

The Conversion from footfalls were healthy. Ticket sizes below Rs 20 million are in the comfort zone.

Whereas, units with higher ticket sizes greater than Rs 20 million are also witnessing healthy absorption, but with some inducements, such as relaxed payment plans, etc., are the order of the day. Pune too has been witnessing strong absorption in Hinjewadi and Hadapsar micro-markets, the report added.

The report further added that macroeconomic factors like interest rates are falling (the current repo rate is 5.5 per cent, with another 25 bps cut expected). Low inflation (1.55 per cent in July), income tax relief for earnings up to Rs 12 lakh per year, a good monsoon, and a strong first-quarter GDP growth of 7.8 per cent have all been positive signs, especially for the real estate sector. However, trade uncertainties with the US and layoffs in IT companies pose some risks, the report added.