Real Estate Markets That Will Feel The Pinch of IT Layoffs

Property markets of many cities have to thank the information technology boom that helped them reach a level where they are at present. Property prices in Bengaluru, for example, appreciated consistently prior to 2014. The growth of the residential real estate of the city, known as the Silicon Valley of India, was closely interlinked with its commercial success. As more and more international and domestic IT players set shop here, more and more people came to the city, looking for jobs, and, subsequently, looking for property. Private estimates show that IT professionals aged 30-40 years form an average of 17 per cent of the population across the IT cities. This segment earns between  Rs 20-60 lakh per annum, and is the driving force behind residential real estate. The same is true of other cities such as Chennai, Hyderabad, Noida and Pune. Certain localities in Gurgaon and Mumbai would also feel the pinch of large-scale layoff plans of IT companies.

While experts are of the view that negative impact of the job cuts would only be temporary and not something indelible, the residential real estate space will face the heat in the short-term as office space absorption by the IT sector is likely to fall 15-20 per cent from an all-time high of 43 million square foot last year. For the time, existing residential projects in these cities might find it hard to see buyer interest.

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Let us take a look at the existing residential stock lying with each of these cities.

Bengaluru

According to PropTiger.com, there are a total of 9,048 residential projects in  Karnataka's capital. Of these, 7109 are ready to move in while 1,215 are under construction. Among the most popular localities in the city are Hebbal, Kannamangala, Nayandahalli, Sarjapur and Yelahanka. Among the most prominent developers in the city are Ajmera, Ansal API, DLF, Godrej and Unitech. 

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Chennai

While there are 1157 ready to move in projects in the Tamil Nadu capital, there are 263 under-construction projects. About 14 new projects will be launched in Chennai soon. Top localities in Chennai are Alwarpet, Choolaimedu, Purasaiwakkam and Thiyagaraya Nagar. Among the prominent developers in the city are DLF, Casa Grande, Godrej and Mahindra Lifespace.

Hyderabad

If you are looking for a ready-to-move-in project in Hyderabad, you could pick from 1,192 options. In case you would want to invest in an under-construction property, there are 242 projects to pick from. Top localities in Hyderabad are Ameerpet, Begumpet, Hyderguda and Sri Nagar Colony while top developers in the city include Aparna, Lodha, Prestige and Mahindra Lifespace.  

Noida

There are a total of 761 residential projects in Noida. Of these, 267 are ready to move in while 395 are under construction. Top localities in Noida include Sector 76, Sector, 77, Sector 78, Sector 22D-Yamuna Expressway and Sector 25-yamuna Expressway. The popular developers active in the city are DLF, Tata Value Homes and 3C Noida.

Pune

There are 7,558 housing projects in Pune, data show. Of these, 5,551 are ready to move in while 1,541 are under construction. Among the most popular localities in the city are Baner, Kharadi, Hinjewadi, Ravet and Wakad. Among the most prominent developers in the city are Ajmera, Ashiana Housing, Lodha, Parsvnath and Tata Value Homes. 

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