Tech layoffs cast shadow on Bengaluru real estate: Homebuyers, landlords grow wary

Bengaluru's residential real estate sector is beginning to reflect the stress of widespread job cuts in the tech industry. With multinational companies announcing layoffs through early 2025, the city’s property market, heavily reliant on IT and tech employees is witnessing reduced confidence among both homebuyers and landlords.

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Potential buyers, especially salaried professionals in the IT sector, are postponing major investments like home purchases. Many, impacted by recent job losses, are opting for safer investment routes while focusing on employment recovery. This shift is leading to a slowdown in property inquiries, especially in areas previously in high demand such as Whitefield, Marathahalli, and near Manyata Tech Park.

Landlords, too, are treading cautiously. Amid employment instability, many are reconsidering lease renewals for tech employees, especially as the standard 11-month rental terms near completion. In a notable trend, landlords are hesitant to extend agreements, concerned about tenants’ ability to continue rent payments, especially those already juggling EMIs.

The uncertainty is further reflected in stagnant rental growth. While rent prices in tech-driven areas rose steeply in the past few years, the rate of increase has now reduced considerably, hovering around 7-8% in 2025 compared to 15-20% in previous years. Rental hotspots like Koramangala, Sarjapur, and Bellandur, once known for double-digit growth, are now experiencing a more subdued demand.

Although short-term corrections seem likely, real estate experts remain optimistic about Bengaluru’s long-term prospects.