TCS Layoffs: Minimal Impact on Real Estate Sector, Say Experts
India’s real estate sector is expected to remain stable despite TCS's plan to lay off 12,000 employees over the next few quarters. Experts believe the impact will be limited unless layoffs become widespread across the IT industry.
Real EstateTcs LayoffsOffice LeasingHousing DemandGccsReal EstateJul 29, 2025
The recent decision by TCS to reduce 12,000 jobs, while significant, accounts for just about 2 percent of the workforce and may not have an immediate or widespread impact on the real estate market, said Amit Agarwal, CEO and Co-founder, NoBroker. At this scale, the move is unlikely to cause a major slowdown in office leasing or housing demand in key IT corridors in the short term. However, if such workforce rationalisations continue across the sector and begin to reflect a broader hiring slowdown, it could gradually influence real estate absorption patterns, particularly in IT-heavy micro-markets, he added.
A Bengaluru-based developer, who did not wish to be named, shared similar sentiments: We have seen this with other major occupiers such as Amazon, which carried out multiple rounds of layoffs in the past few years, but demand from other sources continued as work-from-home arrangements ended. We think this will be a one-off event, and there are other sources of demand as well, especially the India-facing businesses, corporates, and Global Combability Centers (GCCs) of segments such as automobiles, pharma, or financial services.
Analysts believe the growing expansion of GCCs in India may help offset any temporary impact caused by layoffs in traditional IT firms. GCCs have been expanding rapidly in India, particularly in Bengaluru and Hyderabad, where the cost of rentals and housing remains relatively competitive. Office space demand is also being supported by this trend, with GCCs now accounting for a sizeable portion of leasing volumes.
Bengaluru alone accounted for 10.2 million sq ft of GCC leasing in H1 2025, followed by Chennai (2.5 million) and Hyderabad (2.4 million), as per Knight Frank India. Even so, developers said that some homebuyers are beginning to show signs of caution. An analyst at a broking company noted that: Due to job-related uncertainty, homebuyers are taking longer to finalise their purchase decisions. The decision-making cycle has extended, indicating a more cautious approach in the current environment.
This caution is already visible in Bengaluru, where brokers say landlords in tech-heavy areas such as Marathahalli and near Manyata Tech Park are increasingly hesitant to renew leases with tenants from the IT sector, he added. India’s real estate market has seen similar concerns before. In 2023, after the collapse of Silicon Valley Bank and layoffs at several global and domestic startups, sentiments briefly dipped before recovering. The share of IT services in overall office leasing has also declined since the pandemic, with many multinational companies opting to move technology and strategic roles in-house through GCCs. Demand from India-facing businesses has also grown steadily over the past few years.
As of now, while the job cuts at TCS have raised short-term concerns, the overall demand from alternative sectors, including automotive, pharma, and financial services, as well as rising GCC activity, is expected to support stability in the commercial and residential property markets.
Frequently Asked Questions
What is the expected impact of TCS layoffs on the real estate sector?
Experts believe the impact will be minimal unless layoffs become widespread across the IT sector. The 12,000 job cuts represent only about 2 percent of TCS's workforce, which is not expected to significantly affect office leasing or housing demand in the short term.
How are Global Combability Centers (GCCs) influencing the real estate market?
GCCs are expanding rapidly in India, particularly in cities like Bengaluru and Hyderabad. They are supporting office space demand and helping to offset any temporary impact caused by layoffs in traditional IT firms.
What is the current trend in homebuyer behavior in tech-heavy areas?
Due to job-related uncertainty, homebuyers in tech-heavy areas are becoming more cautious. The decision-making cycle for purchasing homes has extended, and landlords are increasingly hesitant to renew leases with tenants from the IT sector.
How has the real estate market recovered from past layoffs and economic downturns?
In 2023, after the collapse of Silicon Valley Bank and layoffs at several startups, the real estate market briefly dipped but quickly recovered. The decline in IT services' share of office leasing has been offset by increased demand from other sectors like automotive, pharma, and financial services.
What role do India-facing businesses play in the real estate market?
India-facing businesses, including corporates and GCCs in sectors like automobiles, pharma, and financial services, have seen steady growth in demand. They are contributing to the stability of both commercial and residential property markets.
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