TCS layoffs could impact housing market in key tech cities
'There is no doubt that TCS is the de facto bellwether of the Indian IT industry, and we can expect uncertainty in the overall housing market if these layoffs do happen – especially if other IT majors follow suit. India's IT sector significantly influences the housing sales market in India, particularly in key IT hubs such as Bengaluru, Hyderabad and Pune, where IT employees account for a sizeable share of mid-and high-value home sales,' Prashant Thakur, Regional Director & Head – Research & Advisory, ANAROCK Group told TNIE.
Thakur added that their contribution peaked between 2022 and early 2024, thanks to considerable IT employment spikes, salary increments, and the relocation trends seen after COVID-19. Even in the robust premium housing market, IT professionals contribute to demand.
Prestige Group, which has a strong presence on its home turf Bengaluru, however, does not see any major impact of TCS layoffs on housing demand.
'Today, significantly more jobs are being created in Bangalore and other IT hubs across the country in GCCs, tech start-ups, and other IT and AI-related organisations. In Bengaluru alone, more than 1.2 lakh jobs were created in 2024-25 in the tech sector, compared to the 12,000 job layoffs being done across the country by TCS,' Praveer Shrivastava, Sr. Executive VP, Residential, Prestige Group, told TNIE.
He added, 'A record 79 million sq ft of office space was absorbed in India in 2024-25, with Bengaluru leading the list at 21.8 million sq ft. So economic activity and demand remain very strong. Demand for real estate is coming from across many segments including IT and as of now we don't see any real impact coming out of the recent newsflow.'
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