Indian real estate markets faced significant downward pressure on Tuesday, February 24, 2026, as a severe rout in the Information Technology sector triggered a sell-off across property stocks. The Nifty Realty index plunged 3%, reaching an intraday low of 810.10. Investor sentiment was rattled by fears that AI-driven disruptions in the IT services industry could permanently shrink demand for commercial office spaces and urban housing. The IT sector remains a primary driver of high-end residential sales and office leasing in India, making the real estate market highly sensitive to tech employment trends. Prestige Estates Projects led the losers with a sharp 5% decline, trading near 1,456.60. Other major players followed the downward trend, with Signatureglobal dropping over 3.3% to approximately 985.25. Lodha Developers and Godrej Properties also saw values retreat by 3% to 4%, as the broader market reacted to a 1,100-point crash in the Sensex. This volatility marks a challenging start to 2026 for the sector. The Nifty Realty index has now recorded an 8.4% decline year-to-date. Rising concerns over stretched valuations have added to the pressure, with some stocks trading at Price-to-Earnings multiples significantly higher than their long-term averages. Beyond domestic tech worries, global factors contributed to the cautious mood. Renewed tariff threats from the U.S. administration and a 13% crash in IBM shares overnight fueled a global tech sell-off that spilled into Indian markets. High interest rates also continue to impact construction costs and buyer affordability in the multifamily segment. Despite the current slump, the underlying residential market shows pockets of resilience. Luxury housing sales grew nearly 97% year-on-year in late 2025, and office absorption reached 59.6 million square feet in the first nine months of the current fiscal cycle. Investors are now closely watching if the IT sector stabilization can prevent further contagion in property valuations. [Prestige Estates stock drop](https://www.youtube.com/watch?v=kE4mHLRuBu8) This video provides a deep dive into the 2026 outlook for the Indian real estate market, specifically analyzing how shifts in the IT sector and GCCs are impacting office leasing and residential demand. http://googleusercontent.com/youtube_content/0