Bengaluru’s PG sector struggles amid BBMP crackdown and soaring operational costs

Paying Guest (PG) accommodations in Bengaluru, which had begun to recover from pandemic-related setbacks, are once again struggling under a wave of challenges. A combination of new regulations from the Bruhat Bengaluru Mahanagara Palike (BBMP), escalating water and electricity bills, and job cuts in the tech industry has forced many PG operators to either shut down or operate at significant losses.

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Many PG owners have reported a decline in occupancy rates and a financial loss of around 20-25%. Marathahalli and Sarjapur, which host a large number of IT professionals, have seen at least two PGs in every area close down.

Recent action by BBMP, which sealed nearly 100 PGs in Mahadevapura for failing to comply with safety and licensing norms, has further deepened the crisis. This crackdown follows a tragic incident last year, where a murder at a PG prompted authorities to tighten regulations.

Adding to the difficulties, BBMP regulations stipulate that PGs cannot operate on roads narrower than 40 feet, forcing many more establishments to close. While PG owners have petitioned the BBMP and the Bangalore Water Supply and Sewerage Board (BWSSB) to consider them as residential consumers to ease financial pressure, rising operational costs continue to challenge them. Many owners are reluctant to raise rents for their predominantly student residents but find it increasingly difficult to sustain their businesses.