How Tech Layoffs Are Affecting Bengaluru's Real Estate In 2025

Bengaluru's real estate market is starting to feel the heat as tech companies lay off thousands of workers in 2025. From delayed home purchases to cautious landlords, the city's housing scene is going through a noticeable shift. Experts say the impact may be temporary, but for now, both buyers and renters are thinking twice before making big decisions.

Even premium apartment projects like Prestige Oakville in Whitefield, known for its modern living and great location, are seeing slower booking cycles—though interest remains strong among long-term buyers.

Bengaluru has always been seen as India's tech capital. For years, IT jobs brought thousands of people here, creating strong demand for both rental homes and new apartments. But this year, things are changing.

Big tech companies like Microsoft and Amazon have announced fresh rounds of layoffs. Microsoft alone has let go of over 6,000 employees globally in 2025, including hundreds in India. As a result, people who once felt secure are now worried about their jobs—and that's showing up in the housing market.

In areas like Whitefield, Marathahalli, and near Manyata Tech Park, landlords are unsure about renewing leases. Many tech workers are on 11-month rental agreements, and landlords now wonder if it's safe to continue.

"Earlier, we used to sign renewals easily. Now, owners are asking more questions—what company the tenant works for, whether they've faced layoffs, and so on," said Kiran Kumar, a senior executive at a real estate firm.

Some landlords are even choosing to leave flats empty rather than risk delayed rent payments.

On the other side, many tenants who lost jobs are trying to reduce expenses. Some are moving back to their hometowns. Others are shifting to cheaper neighborhoods or switching from 2BHK to 1BHK flats. In paying guest (PG) setups, occupancy has dropped by as much as 30–40% in some areas. Several PG owners say they are struggling to cover maintenance and running costs.

Last year, rents in tech corridors like Sarjapur Road, Electronic City, and Bellandur had gone up by 15–30%. But that momentum has now slowed. Brokers say rent hikes are down to just 7–8% this year. In some places, there's no increase at all.

Landlords who earlier refused to negotiate are now offering discounts or flexible terms. Some are even okay with shorter lease periods.

Most people buying homes in Bengaluru are salaried professionals, especially in IT. These buyers usually take home loans, so job security matters a lot. With layoffs in the news, many are choosing to wait.

"We're seeing people visit projects like Prestige Oakville in Whitefield, but they're not rushing to book. They want to be sure their job is stable first," said a local property consultant.

This wait-and-watch attitude is making developers a bit anxious too. Some are planning special offers or flexible payment plans to help ease the pressure.

There are a few key reasons:

1. Layoffs and Job Insecurity: People are unsure if they'll keep their jobs, so they're putting big decisions like buying a home on hold.
2. High Property Prices: Home prices in Bengaluru have gone up by nearly 80% in the past five years. That's great for investors—but hard on first-time buyers, especially with flat or slow salary growth.
3. AI and Automation: More companies are using artificial intelligence and automation, which means fewer entry-level jobs. This trend is making young professionals even more careful with their finances.
4. NRI Buying Slows: Earlier, NRIs working abroad used to invest in Bengaluru homes. But now, fewer tech workers are moving overseas, so NRI demand is also cooling off.

Experts believe that a short-term price correction is likely. In some areas, prices may fall by 10–20%, especially if the property is overpriced or located in areas heavily dependent on tech jobs.

Developers may also start focusing more on affordable housing or diversify to attract non-tech buyers. Locations like Whitefield, home to Prestige Oakville, may still see steady demand in the long run—but buyers are likely to take more time before making a decision.

Most real estate analysts agree on one thing: this slowdown is likely temporary.

1. Short-Term: Expect more cautious buyers, fewer new bookings, and landlords becoming more flexible. It's a buyer's market for now.
2. Long-Term: Bengaluru still has strong fundamentals. The city has great infrastructure, growing metro lines, good schools, and a large pool of skilled workers.

"This is not a crash—it's a correction," says Priyanka Kapoor from ANAROCK Group. "Bengaluru's real estate is adjusting to new realities, but it remains one of the strongest markets in India."

Projects with trusted builders—like Prestige Oakville—are expected to hold steady thanks to their brand value, location benefits, and modern community living.

Layoffs are clearly affecting Bengaluru's housing market, especially in areas tied closely to IT. Rents are stabilizing, landlords are more cautious, and homebuyers are hitting pause.

But this doesn't mean the market is collapsing. Bengaluru has seen ups and downs before. With new industries growing and better connectivity through projects like the Metro and Peripheral Ring Road, real estate here is likely to bounce back.

If you're planning to rent or buy—especially in a strong location like Whitefield—this might actually be a good time to look around, compare options, and get a good deal. Just make sure you stay financially safe and make decisions with a long-term view.