Tech Job Cuts: Will Bengaluru's Real Estate Market Take a Hit?
Bengaluru's residential real estate market is feeling the heat from tech layoffs, with buyers, tenants, and landlords all expressing concerns. Experts weigh in on the potential impacts and long-term outlook.
Real EstateTech LayoffsBengaluruMarket ConfidenceRental MarketReal Estate NewsJun 06, 2025
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.
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.
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.
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%.”
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.
Frequently Asked Questions
How are tech layoffs affecting homebuyers in Bengaluru?
Tech layoffs have shaken buyer sentiment, causing many homebuyers to delay their purchases and become more cautious about making long-term financial commitments.
What are landlords in Bengaluru considering in light of tech layoffs?
Landlords are becoming more cautious and are reconsidering lease renewals for tech sector tenants, with many debating whether to extend agreements or let them lapse after the 11-month term.
How has the rental market in Bengaluru been impacted?
Rental rates have remained flat in the past few months, and landlords are becoming more flexible on rent expectations, especially in suburban areas where supply has increased.
What is the long-term outlook for Bengaluru's real estate market?
Despite short-term corrections, the long-term fundamentals remain strong, as Bengaluru continues to be a major tech and business hub.
How are tech layoffs affecting the decision-making cycle of homebuyers?
Homebuyers are taking more time to make decisions, showing increased caution due to job uncertainty and the overall economic climate.
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