Will TCS Layoffs Impact Real Estate Sales in Tech-Hub Cities?
Vijay Agarwal of Equirus Capital discusses the potential impact of TCS layoffs on the real estate market in cities like Bengaluru and Hyderabad, and how Global Capability Centres (GCCs) could offset these effects.
Real EstateTcs LayoffsGccsHousing MarketBengaluruReal Estate NewsJul 29, 2025
"Any job cuts by TCS or other similar companies may be absorbed by the GCCs," Agarwal said. He added that it will take another two to three quarters to fully assess how the situation evolves.
In Bengaluru, where IT professionals account for roughly 40% of home sales, there might be a short-term hit. However, housing demand from listed developers is holding up, with average home prices around ₹2 crore. Unless job losses become more widespread, the overall market should remain stable.
Agarwal pointed to the steady rise in demand from GCCs in cities like Hyderabad and Bengaluru. "Hyderabad has become an attractive market for GCCs from the rental perspective and housing cost perspective," he said. Companies are also looking to diversify locations and often choose between these two cities when setting up additional centres.
On the supply side, developers like Lodha Developers, DLF, Oberoi Realty, and Prestige Estates are still posting healthy pre-sales. The temporary dip seen during the April–June 2025 quarter, Agarwal said, was more due to external events and geopolitical uncertainty.
Office space demand is also getting a boost from GCCs. "Generally, if you see 20 to 30% of the leasings are absorbed by GCCs," Agarwal said, pointing to rising headcounts as a positive trend for the property market.
Developers focused on the ₹1–2 crore price range, such as Prestige Estates, Brigade Enterprises, and Sobha, are best placed to benefit, especially in southern cities.
Sushil Kumar Modi, Executive Director-Finance at Lodha Developers, echoed this view in a recent CNBC-TV18 interview. He said demand in cities like Bengaluru remains resilient. "There are numerous facets of the industry which continue to do well," he said in an interview with CNBC-TV18.
He also stressed that real estate supports several other industries and remains a key contributor to economic activity. "Real estate, in any case, is a precursor, because it enables many other industries to perform - be it steel, cement, cable, tile, or numerous other industries," Modi added.
Frequently Asked Questions
What are Global Capability Centres (GCCs) and how do they impact the real estate market?
Global Capability Centres (GCCs) are large-scale, multinational company facilities that provide specialized services and support. They often require significant office space and housing for employees, which can boost demand in the real estate market.
How might TCS layoffs affect real estate in Bengaluru?
TCS layoffs could lead to a short-term decrease in housing demand in Bengaluru, where IT professionals account for about 40% of home sales. However, the overall market is expected to remain stable unless job losses become more widespread.
Why is Hyderabad an attractive market for GCCs?
Hyderabad has become attractive for GCCs due to its lower rental and housing costs compared to other major cities. This makes it a cost-effective location for companies to set up additional centres.
How are developers responding to the current market conditions?
Developers like Lodha Developers, DLF, Oberoi Realty, and Prestige Estates are still posting healthy pre-sales, despite a temporary dip in the April–June 2025 quarter. They are focusing on the ₹1–2 crore price range, which is seeing strong demand.
What is the importance of real estate in supporting other industries?
Real estate is a key industry that supports various sectors such as steel, cement, cable, and tiles. It enables other industries to perform and is a precursor to economic activity, contributing significantly to the overall economy.
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