Bengaluru, India’s leading IT and innovation hub, is witnessing early signs of stress in its residential real estate sector. With global technology companies announcing fresh rounds of layoffs, the market sentiment among tenants and buyers—particularly from the tech industry—is shifting. Real estate brokers and developers in the city are reporting growing hesitation among landlords, homebuyers, and tenants as employment uncertainty looms large.
From rental slowdowns to delayed homebuying decisions, the job market tremors are beginning to reflect in Bengaluru’s property dynamics. While the long-term outlook remains optimistic, the short-term impact is unmistakable.
Quick Summary Table: Layoffs & Real Estate Impact
| Aspect | Impact/Trend |
|---|---|
| Affected Buyer Sentiment | Tech layoffs leading to postponement of home purchases |
| Landlord Decisions | Increased hesitation to renew leases with techie tenants |
| Rental Trends (2024–2025) | Growth slowed to 7–8% (down from 15–20% last year) |
| Key Areas Affected | Marathahalli, Whitefield, Electronic City, Manyata Tech Park |
| Market Outlook | Short-term correction likely, long-term fundamentals remain strong |
Why Tech Layoffs Are Impacting Bengaluru’s Real Estate
The city’s real estate is deeply linked to the IT-ITeS ecosystem. According to Vestian Research, this sector alone contributed to 40% of all leasing activity in Bengaluru in 2024. A slowdown in tech hiring or employment inevitably impacts housing demand—both for rentals and purchases.
“Most real estate buyers in Bengaluru are salaried professionals from IT firms. The recent wave of layoffs has made buyers cautious and slowed the decision-making cycle,” says Zayd Noaman, President, CREDAI Bengaluru.
Landlords Grow Cautious About Tech Tenants
Brokers report that several landlords are debating whether to renew leases with tech sector tenants. Given the standard 11-month lease term in most agreements, this review period has turned into a moment of decision.
“Landlords are unsure about renewing leases with techies. With layoffs rising, tenants are struggling—especially those managing both EMIs and rent,” said Kiran Kumar, Vice President at Hanu Reddy Realty.
Rental Growth Slows in Key Tech Corridors
Popular rental markets such as Whitefield, Marathahalli, and Electronic City that witnessed a 20–35% rent surge post-pandemic are now showing signs of cooling. As supply increases and tenants negotiate harder due to salary stagnation, landlords are becoming more flexible.
“The rental growth this year is much lower—about 7–8% compared to last year’s 15–20%,” said Raghavendra Rao, AVP Marketing at Indiassetz.
Locations like Bellandur, Sarjapur Road, and Koramangala, once red-hot rental zones, are now stabilizing. Suburban landlords, in particular, are adjusting expectations to meet changing tenant budgets.
Buyers Postpone Purchases Amid Uncertainty
Job losses are pushing would-be homeowners to the sidelines. For many, the risk of EMIs without a steady income is prompting a shift toward safer, liquid investment avenues.
“Job uncertainty is clearly impacting buyer confidence. Many are taking more time to evaluate purchases or are deferring altogether,” said Priyanka Kapoor, SVP, Research at ANAROCK Group.
“Real estate remains a long-term asset. Buyers must evaluate their financial readiness before committing,” advised Shrinivas Rao, CEO, Vestian.
FAQ: Bengaluru Real Estate Amid Tech Layoffs
Q1: Are tech layoffs really impacting Bengaluru’s real estate market?
A: Yes. Real estate demand, especially among IT professionals, has softened as layoffs increase buyer caution and reduce rental inquiries.
Q2: Which areas in Bengaluru are seeing the most impact?
A: Marathahalli, Whitefield, Electronic City, Bellandur, and areas near Manyata Tech Park are among the most affected.
Q3: Are landlords in Bengaluru refusing lease renewals for tech tenants?
A: Some landlords are reconsidering renewals or negotiating harder due to job insecurity among tenants.
Q4: How have rental prices changed recently?
A: Rental growth has slowed to 7–8% in 2025, compared to 15–20% growth last year.
Q5: What’s the long-term outlook for Bengaluru’s real estate?
A: Despite short-term corrections, the city’s strong tech foundation, infrastructure, and talent pool ensure robust long-term demand.