Bengaluru’s real estate sector, long buoyed by the city’s thriving tech industry, is now feeling tremors from a wave of layoffs hitting global and domestic IT firms. From postponed home purchases to cautious landlords reconsidering rental agreements, the impact of job uncertainty is starting to ripple across residential property markets, particularly in the city’s tech-driven neighborhoods.
While the long-term outlook for Bengaluru remains optimistic, experts say a short-term correction is underway—marked by reduced rental appreciation, stagnating demand, and greater prudence among both tenants and buyers.
Tech Layoffs Rattle Buyer Confidence
The recent surge in tech job losses has created a ripple effect, denting the confidence of prospective homebuyers and causing landlords to second-guess lease renewals.
- Suresh Gowda, a 40-year-old professional recently laid off from a medical tech firm, shelved his home-buying plans to focus on alternative investments and job hunting.
- “Today in Bengaluru, landlords are becoming doubtful about tenants, especially from the tech sector,” said Kiran Kumar, VP at Hanu Reddy Realty. “We see a lot of discussions happening around whether landlords should renew agreements with techies or let them go.”
Why Bengaluru’s Real Estate Is So Tied to Tech
Bengaluru’s property market is deeply intertwined with the IT-ITeS sector, which accounted for 40% of the city’s total real estate leasing activity in 2024, according to Vestian Research.
- The city’s ecosystem—built around education, skilled workforce, and global tech investments—has positioned it as India’s Silicon Valley.
- “Most real estate buyers in Bengaluru are salaried professionals, with a significant number relying on home loans,” said Zayd Noaman, President, CREDAI Bengaluru.
Rental Market Slows as Sentiment Shifts
In once-hot rental zones like Marathahalli, Whitefield, and Electronic City, rental demand is beginning to soften.
- Rental growth that hit 20–35% annually in 2023 has now slowed to around 7–8% in 2025.
- “Landlords are becoming more flexible on rent expectations,” said Raghavendra Rao, AVP, Marketing, Indiassetz, “especially in suburban pockets, where supply has increased and tenants are more cost-conscious.”
Expert Outlook: Temporary Dip, Strong Fundamentals
Despite the current headwinds, long-term prospects remain robust, supported by Bengaluru’s status as a global tech and business hub.
- “It is always advisable to be cautious while investing in real estate assets,” noted Shrinivas Rao, FRICS, CEO of Vestian. “Prospective buyers should meticulously analyse their financials.”
- “With job uncertainty looming, the overall decision-making cycle of homebuyers has gone up,” added Priyanka Kapoor, SVP, Research, ANAROCK Group.
Quick Summary Table
| Factor | Current Trend |
|---|---|
| IT sector lease contribution | 40% of Bengaluru’s total (2024) |
| Rental growth (2023) | 20–35% in prime tech corridors |
| Rental growth (2025 YTD) | 7–8% in same areas |
| Key impacted locations | Marathahalli, Whitefield, Bellandur |
| Buyer sentiment | Cautious, delayed decision-making |
| Landlord outlook | Hesitant on lease renewals for techies |
FAQs
1. How are tech layoffs affecting Bengaluru’s real estate market?
Job cuts are leading to deferred home buying decisions and increased caution among landlords, especially in tech-centric neighborhoods.
2. Are rental prices dropping in Bengaluru?
While not dropping sharply, rental growth has slowed significantly—from 20–35% last year to around 7–8% in 2025 in tech corridor regions.
3. Why is Bengaluru’s housing market so linked to the tech sector?
Roughly 40% of the city’s real estate leasing comes from IT-ITeS companies. A majority of homebuyers are salaried tech professionals relying on home loans.
4. Will Bengaluru’s real estate prices correct further?
Experts predict a price correction, especially in overpriced pockets, as the market normalizes after a 3-4 year bull run.
5. Is it still safe to invest in Bengaluru real estate?
Yes, but with caution. Analysts advise potential buyers to evaluate financial stability and make informed, long-term decisions.