Tech Layoffs Impact Home Sales in India's IT Hubs

Residential real estate in India’s premier IT hubs—Pune, Bengaluru, and Hyderabad—is witnessing a sharp cooldown as sporadic tech layoffs dampen homebuyer sentiment.

The sporadic layoffs in information technology (IT) firms have significantly impacted residential real estate sentiments in key IT hubs such as Pune, Bengaluru, and Hyderabad. This has led to an increase in unsold inventory and a decline in sales in these cities.

Among others, US-based IT company Oracle recently laid off 12,000 staff in the country, and more cuts are likely to happen, according to recent reports. The country’s largest IT services firm, Tata Consultancy Services (TCS), reduced its staff strength by 23,460 in FY26.

Unsold inventory of housing units in Bengaluru has increased by 23% in the first quarter of 2026 to 71,611 units. Pune has seen a 12% rise to 54,439 units, and Hyderabad has experienced a 3% increase. The rise in unsold units in these cities is the highest among the top cities in the country, according to Knight Frank India.

Though residential sales across top cities of the country are on a decline after three years of boom and sharp rise in prices, the home sales in IT hubs are clearly seeing the impact of layoffs, experts say.

Housing sales in Pune in the first quarter of 2026 saw a 3% decline, while Hyderabad saw 4% growth and Bengaluru saw no growth at all, according to Knight Frank. Sequentially, Bengaluru saw a 5% decline in Q1 home sales, while Pune saw a 10% decline and Hyderabad saw no growth, as reported by Anarock Property Consultants.

“The layoffs are definitely playing on homebuyer sentiment in these cities, and end-user demand could have been better in all these IT-dominated markets had this not been the case,” said Vivek Rathi, National Director, Research, Knight Frank India.

Rathi added that the southern markets of Bengaluru, Hyderabad, and Chennai have been more resilient to this phenomenon so far. However, sentiment among homebuyers from the IT sector is expected to remain subdued. “The AI story is still evolving and must be monitored closely in subsequent quarters,” he said.

Prashant Thakur, Executive Director and Head of Research and Advisory at Anarock Property Consultants, noted that buyers in these cities are in a ‘wait and watch’ mode and are not in a hurry to buy, expecting prices to correct. IT layoffs, along with summer vacation and intense heat in many cities, have led to a slowdown in residential sales in recent weeks, Thakur added.

“April-June quarter will clearly see the impact of these factors. Cancellation of bookings could also happen,” he said. Thakur expects the unsold stock in the IT hubs to rise 3 to 4% this year. Developers are also facing challenges in terms of not being able to announce big launches and increase prices despite the rise in costs, due to weak demand.

Amit Bagri, Managing Director and CEO at Kotak Mahindra Investments, said that the industry is worried that more news of IT layoffs could have a major impact on sales.

However, Bagri noted that leasing by global capacity centres (GCCs) is working as a countervailing force to offset the disruption caused by artificial intelligence (AI) in IT and ITES segments. “We saw a record leasing last year, which was significantly contributed to by GCCs. As far as AI goes, no Indian company has implemented it actively now,” he said.

The impact of these layoffs on the real estate market is a complex issue, with multiple factors at play. While the immediate effects are visible, the long-term implications will depend on how the IT sector and the broader economy evolve in the coming quarters.