Real estate shares drop for the seventh straight session on Wednesday, January 14. Experts suggest that IT layoffs are weighing on luxury housing demand
and investor sentiment. The sharp downturn pushed the Nifty Realty index down roughly 1.7 per cent, hitting a near nine-month low of 843.60 during Wednesday’s morning trade. Over the past seven trading sessions, the sector has lost a total of 8 per cent. Among the biggest losers on January 14 were Signatureglobal, whose shares dropped over 2 per cent, and Prestige Estates, down around 2 per cent. Macrotech Developers (Lodha), Brigade Enterprises, and Phoenix Mills fell more than 1 per cent each. Anant Raj and Godrej Properties declined approximately 1 per cent, while Sobha saw marginal losses. On the positive side, Oberoi Realty and DLF traded with slight gains. Are IT Layoffs Driving The Decline? Not just the Indian IT sector but the sector across the globe has been experiencing mass layoffs, continuing into 2026. In July last year, Tata Consultancy Services announced plans to cut 2 per cent of its workforce, over 12,000 employees, to stay agile amid technology disruptions. TCS released 6,000 employees in Q2 and about 1,800 in the December quarter. Meanwhile, HCLTech reported a net reduction of 261 employees in Q3, leaving a total workforce of 2,26,379 by December. Analysts link these layoffs to falling housing demand in key markets. Shashank Gupta, Director, RPS Group, said in a Moneycontrol report: "IT layoffs are likely to be the major reason for the low demand in the luxury segment of urban centres like Bangalore and Hyderabad as they will be discouraging the high-income buyers." He added that mid-to-premium housing sales, already down 15 per cent year-on-year, are expected to continue declining as professionals opt to rent instead of upgrading. Lack Of Trust In Developers? In addition to the impact of layoffs in IT firms, India’s real estate sector struggled under a persistent trust deficit for years. Chronic project delays, lack of transparency, and unresolved buyer complaints cast a long shadow over an industry frequently questioned for its credibility. Even dazzling launches and high-end developments couldn’t mask the systemic inefficiencies that left homebuyers uneasy and investors cautious. With accountability in short supply, real estate became a realm of uncertainty, where confidence often had to compensate for the absence of clarity. However, this scenario is changing with a new generation of developers, alongside established names, is working towards rebuilding the public confidence through transparency, compliance, governance and timely execution. The sector’s operating philosophy has moved from brand perception to performance-led trust, reshaping how homes are sold, financed and delivered. However, the financial strain due to layoffs in the IT sector has started to strain the industry. Regulatory Scrutiny The real turning point came with the Real Estate (Regulation and Development) Act, 2016 (RERA), which marked a shift from unchecked expansion to structured accountability. When RERA came into force in 2017, developers were mandated to adhere to strict timelines, ring-fence project funds through escrow accounts, and provide real-time updates on construction progress—resetting expectations across the entire value chain. "The business environment for Indian real estate has transformed dramatically in recent years," said Shishir Baijal, CMD of Knight Frank India, in a report from The Economic Times. "Regulatory measures such as RERA, the Benami Transactions (Prohibition) Amendment Act, and stronger anti-money laundering frameworks have introduced unprecedented levels of accountability and transparency. At the same time, homebuyers have become far more discerning and informed." The entry of institutional investors, including private equity funds, sovereign investors, and global institutions—brought additional layers of financial discipline, governance oversight, and milestone-linked fund deployment. According to Baijal, this combination of evolved consumer expectations and institutional scrutiny has driven a profound cultural shift in the sector. "Today, trust is no longer built on brand visibility alone; it is earned through consistent performance, transparent practices, and long-term commitment."
