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Will Bengaluru real estate market be impacted as tech layoffs impact tenants and buyers? Experts weigh in
Are IT job layoffs making Bengaluru landlords cautious? Brokers say many landlords are now reconsidering lease renewals for tech tenants
Bengaluru’s residential real estate market is beginning to feel the impact of ongoing job cuts in the tech industry. Suresh Gowda (name changed), 40, who was employed at a medical entrepreneurship firm in the city, had been planning to buy a home. However, after losing his job, he has put those plans on hold and is now focusing on finding new employment while exploring investments in stocks and other avenues instead.
Real estate brokers say the wave of layoffs has shaken buyer sentiment and dampened market confidence. It’s not just homebuyers and tenants who are concerned; landlords, too, are growing cautious. Several landlords in Bengaluru are reportedly reconsidering lease renewals for tech sector tenants, with many debating whether to extend agreements after the standard 11-month term or let them lapse amid rising uncertainty.
This comes as global MNCs have already declared major layoffs in 2025. According to media reports, Microsoft has announced a fresh round of layoffs impacting 305 employees, just weeks after it laid off over 6,000 staff members worldwide. In its official statement, Microsoft said it is making “organisational changes necessary to best position the company for success in a dynamic marketplace.”
Will tech layoffs spark lease renewal doubts among Bengaluru landlords?
Real estate brokers point out that several landlords in Bengaluru are now uncertain about renewing leases for techie tenants, with many discussing whether to continue or end agreements after the 11-month term.
"Today in Bengaluru, landlords are becoming doubtful about tenants, especially from the tech sector. We see a lot of discussions happening around whether landlords should renew agreements with techies or let them go when the 11-month rental term ends," said Kiran Kumar, vice president at Hanu Reddy Realty.
In some cases, tenants are struggling; they’re already paying EMIs and can’t manage the rent. These kinds of discussions are common now, especially in areas like Marathahalli and near Manyata Tech Park, he said.
Also read: Bengaluru tech layoffs: Is it the right time to invest in real estate? Netizens weigh in
Why does Bengaluru real estate rely on layoffs and market movement?
According to Vestian Research, the IT-ITeS sector accounted for 40% of all real estate leasing in the city in 2024, highlighting its heavy dependence on the tech industry. With global tech firms continuing to announce layoffs, a decline in hiring and rising job losses could trigger a chain reaction, delaying home buying and rental demand, experts say.
They say Bengaluru provides a comprehensive ecosystem for the tech industry, encompassing education, a robust talent pool, and ample opportunities for the real estate sector.
"Most real estate buyers in Bengaluru are salaried professionals, with a significant number relying on home loans. The majority are employed in IT companies or in roles that support the tech industry. As apartment prices continue to climb, we are also seeing growing interest from CXOs and business professionals, particularly those linked to the technology sector," Zayd Noaman, president of CREDAI Bengaluru, previously told HT.com.
Layoffs and their impact on Bengaluru real estate
Experts note that the rising adoption of automation and artificial intelligence is reshaping the tech industry, altering the demand for certain roles and causing shifts in the job market. While growth is slowing in some areas, new opportunities are emerging in advanced tech fields.
"With job uncertainty looming, the overall decision-making cycle of homebuyers has gone up. They are taking their time to make a final decision. This shows that they are somewhat cautious," Priyanka Kapoor, senior vice president, Research, ANAROCK Group, told HT.com.
"It is always advisable to be cautious while investing in real estate assets. Prospective buyers should meticulously analyse their financials and make informed decisions as real estate investments are long-term commitments," Shrinivas Rao, FRICS, CEO, Vestian, said.
Also Read: Bengaluru rentals stay high as landlords capitalize on return-to-office demand, but tenants remain wary
Will Bengaluru’s rental market flatten out?
Rental rates have remained flat over the past few months compared to the same time last year, said Kumar. “In high-growth areas near tech corridors in the east and north of Bengaluru, there hasn’t been significant rental appreciation. Places like Marathahalli, Electronic City, and Whitefield have seen fewer rental enquiries. While rents in these areas rose by 15–20% last year, this year the increase is much lower, around 7–8%.”
As the market normalizes following the bull run of the last 3-4 years, “a price correction is expected, particularly in cases where properties are overpriced,” said Raghavendra Rao, AVP of marketing at Indiassetz.
Since 2023, popular rental hubs like Koramangala, Sarjapur Road, Whitefield, and Bellandur saw rent increases of up to 20-35% annually. “Now, landlords are becoming more flexible on rent expectations, especially in suburban pockets, where supply has risen and tenants are more cost-conscious due to stagnant salary growth,” Rao noted.
Overall, while a short-term correction may affect prices and rents in Bengaluru’s real estate market, experts added that long-term fundamentals remain strong, particularly as the city continues to be a major tech and business hub.
