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Will Tech Layoffs Slow Down Bengaluru's Real Estate Market in 2025?


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As job cuts hit the tech world in 2025, many people in Bengaluru are rethinking their home plans. Some are pausing their property purchases. Others are backing out of rental agreements. Even landlords are starting to worry. With the city so closely tied to the tech industry, the real estate market is now facing some tough questions.

Between January and May 2025, more than 62,000 tech jobs were lost worldwide—and many were from companies with big offices in Bengaluru. Big names like Google, Microsoft, Amazon, and Intel have all trimmed their teams.

  • Companies are cutting costs due to slow growth.
  • Tech firms are restructuring to focus on newer technologies.
  • Artificial Intelligence (AI) and automation are replacing some roles, especially junior ones.

These changes are hitting Bengaluru hard. A large part of the city's workforce is employed in IT and related services, and this job uncertainty is spilling over into real estate.

In 2023 and 2024, rents across tech-heavy areas of Bengaluru shot up. But in 2025, things are changing.

  1. Rental demand in areas like Marathahalli, Whitefield, Sarjapur Road, and Electronic City is down by 15–20%.
  2. Homes that used to get 8–10 inquiries a week now get just 3 or 4.
  1. A 2BHK in Marathahalli that cost ₹35,000 last year is now listed for ₹32,000.
  2. In Electronic City, 3BHKs are down from ₹45,000 to around ₹40,000.
  3. Whitefield homes are seeing ₹2,000–5,000 price cuts per month.

Vacancies are going up, and landlords are taking longer to find tenants. Even paying guest (PG) accommodations, which young IT employees usually rent, are shutting down—nearly 40% have closed in some tech pockets.

Still, some well-designed projects like Birla Evara on Sarjapur Road are holding steady due to strong amenities and location, but owners there too are becoming more flexible with rent.

Many landlords now worry about renting to tech workers. They fear tenants might lose their jobs and leave early or default on rent.

  1. Some landlords are no longer offering the usual 11-month lease renewals.
  2. Security deposits are rising—sometimes up to 6–12 months of rent.
  3. More owners now prefer tenants from government or healthcare sectors.

A broker from Indiranagar shared, "Earlier, landlords used to wait for IT people. Now they ask about job security first."

Many tech workers are also putting homebuying plans on hold. The fear of layoffs and AI replacing jobs is making buyers cautious.

  1. Homebuyers are taking more time to decide. (ANAROCK Group)
  2. People who lost jobs are downsizing from 2BHK to 1BHK homes or shifting to shared rentals.
  3. Mid-income homes (₹40–₹80 lakh), which are popular with salaried professionals, saw a 29% drop in new launches in 2024.

One 30-year-old developer wrote on Reddit, "With AI coming in fast, I don't know if my job will last. I've stopped thinking about buying for now."

However, luxury homes priced over ₹1 crore, like the ones at Birla Evara, are still in demand. Buyers in this segment—CXOs, NRIs, and business owners—aren't affected much by junior-level tech layoffs. They're more focused on location, lifestyle, and long-term value.

Real estate experts believe that Bengaluru's market is slowing, but it's not collapsing.

"We may see prices drop slightly in some areas, especially where too many homes were built," said Raghavendra Rao of Indiassetz.

But there are signs of hope:

  1. The ITeS sector is expected to grow 20% in 2025.
  2. Specialized tech roles like AI, cybersecurity, and cloud computing are in demand.
  3. Hiring in Global Capability Centers (GCCs) is rising, especially for freshers.

According to Instahyre and Economic Times, jobs in advanced tech fields could rise by 75% this year. That means skilled professionals will still buy or rent in top locations.

Projects like Birla Evara, with smart layouts and flexible work-from-home spaces, are well-suited for these evolving needs.

Here's what industry watchers suggest:

  1. Stay flexible with pricing and lease terms.
  2. Focus on tenant stability, not just rent value.
  1. Offer easier payment plans.
  2. Design homes for different income groups, not just tech workers.
  1. Check your finances carefully before committing.
  2. Look at projects in well-connected areas with strong infrastructure.
  1. The government must keep building roads, metro lines, and job zones.
  2. Urban planning reforms (like replacing BBMP with the Greater Bengaluru Authority) can help reduce over-reliance on tech.

The current slowdown in Bengaluru's real estate is real—but it's not the end of the story. As tech companies reshape their teams, the city's housing market is adjusting too. Rentals are softening, and buyers are thinking twice. But with strong infrastructure, skilled workforce demand, and modern projects like Birla Evara leading the way, Bengaluru's property market still holds promise for those who think long term.


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