Layoffs and hiring freezes have spooked Bengaluru in recent weeks — with many on social media platforms predicting a ‘silent recession’. The growing use of artificial intelligence has also prompted concerns that the IT industry might face massive changes in the coming months.
“The whole Bengaluru real estate boom has been riding on IT folks. But that engine is slowing down now. Yeah, politicians and startup folks buy property, but not in the numbers that IT employees did. Demand just isn’t the same. Freshers aren’t getting jobs. Seniors already have houses. So who’s left to buy?” a Reddit user asked recently.
The individual who identified himself as a ‘person working on AI’ noted that the technology would not ‘create jobs’ in the city. He also flagged concerns about a ‘silent recession’ amid increasing layoffs and hiring freezes.
“Fewer people are going abroad for work, so NRI investment in housing is drying up. Hiring freezes, layoffs, no hikes — people are playing it safe. Some might even default on home loans,” the user opined.
Data collated by PropEquity however painted a slightly different picture of the city — even as the housing market continued its overall downward trend. The top nine cities in India saw sales fall by 23% in the first quarter of 2025 while supply declined by a whopping 34% during the same period. Bengaluru was the only city that saw a rise in launches (by 17%) and one of two cities that improved sales.
Housing sales increased by 10% to 18,508 units in Bengaluru during Q12025. The city accounted for 17% of the total sales — rising from 12% during the same period last year. Meanwhile housing supply rose by 17% in Bengaluru to 20,227 units during the first three months of the year. The city also accounted for 25% of the total launches in Q1 2025.
