Bengaluru: The city’s once-thriving real estate sector is facing a downturn as widespread tech layoffs lead to declining demand for PG accommodations and rental properties. With major IT job cuts, property owners and investors are experiencing significant financial strain.
Bengaluru, known as India’s tech capital, is witnessing a sharp drop in the demand for paying guest (PG) accommodations and home purchases. The ongoing layoffs in IT and tech companies have forced thousands of professionals to vacate their rented homes, leading to an oversupply of vacant properties. Many employees who once aspired to own homes are now struggling to sustain themselves in the city, contributing to a real estate slump.
Impact on Rentals and PGs
Prime tech hubs like the Outer Ring Road (ORR), once bustling with IT professionals, are now seeing an increasing number of vacant rental properties. PG accommodations, which were previously in high demand among junior IT employees, are struggling to find tenants. Property prices are also witnessing a decline, putting landlords and investors in a difficult financial position.
Mass Layoffs Shake Bengaluru’s Economy
A major contributor to this crisis is Amazon’s recent decision to lay off 14,000 employees, following a previous round of 18,000 job cuts in November 2024. These layoffs, driven by cost-cutting measures, have deeply impacted Bengaluru’s housing market, as tech professionals primarily rely on PGs and rented apartments.
Amazon is not the only company downsizing. In 2024 alone, 87 tech firms laid off 23,054 employees, while a total of 549 companies dismissed 1,52,472 workers. The adoption of AI-driven automation has further reduced the need for human resources, intensifying job losses across the industry.
Uncertain Future for Bengaluru’s Real Estate
With continued job cuts, the demand for affordable housing in Bengaluru is expected to decline further. The city’s real estate market, once fueled by IT professionals, now faces an uncertain future. Unless the tech industry stabilizes, the impact of these layoffs will continue to ripple across various sectors dependent on the IT workforce.
