In Bengaluru, especially in tech hubs like Whitefield, many 2 BHK apartments are now listed for under ₹40,000 per month. A Reddit post brought attention to this trend, with several users agreeing that rental demand is sharply slowing down. Many see this shift as a warning sign of potential job cuts in India’s IT industry, as tech workers are clearly cutting costs by opting for cheaper housing.
Reddit Post:
Why Are Rents Dropping?
Experts link the trend to mass layoffs in Bengaluru’s tech sector—over 50,000 jobs were lost in 2024 alone. TCS, India’s largest IT exporter, has announced plans to lay off nearly 12,000 employees this month. As a result, demand for rental housing in IT-heavy areas like Whitefield, Marathahalli, Electronic City, and Sarjapur is dropping.
Impact on PGs and Landlords
Paying Guest (PG) accommodations—popular among junior tech employees—are facing major losses. Many PG businesses report revenue declines of up to 25%, with some shutting down due to rising utility bills and stricter BBMP regulations. In some areas, nearly 40% of PGs have already closed.
Landlords are also struggling. Even after listing properties for months, many still can’t find tenants. One Reddit user noted that apartments that used to attract multiple inquiries now barely get any.
Job Insecurity Is Changing Choices
With growing fears of layoffs and the rise of AI replacing entry-level roles, tech workers are playing it safe. More professionals are now avoiding big commitments like home loans and prefer cheaper rentals or moving in with family, rather than risk high rents or EMIs.
Broader Effects on Real Estate and Investors
Nationwide, rental growth has slowed—from 15–20% increases in previous years to just 7–9% in early 2025.Many investors who bought near IT parks are now facing long vacancies and weaker returns.
New Competitors Emerging
As Bengaluru’s tech sector slows, nearby cities like Tumakuru are stepping in. They’re offering ready office spaces and lower living costs to attract businesses and employees, which may further pull demand away from Bengaluru.
Experts say recovery in real estate depends heavily on job growth in other sectors like aerospace, biotech, and startups. Today’s tech professionals are no longer chasing only high salaries—they’re seeking job security and affordable housing too.
Rent prices in Whitefield and other Bengaluru tech suburbs are falling fast. This isn’t just about cheaper apartments—it’s a reflection of deeper issues in the city’s IT industry, job market, and real estate ecosystem.
