TCS Layoffs: Will India’s Tech City Housing Boom Hit Pause?

See All Articles

5 Key Take Aways

1. TCS Layoffs Could Impact Housing Market in Tech Cities: Tata Consultancy Services’ decision to lay off over 12,000 employees (2% of its workforce) may have ripple effects on the housing market in key Indian tech hubs like Bengaluru, Hyderabad, and Pune, where IT professionals are major homebuyers.

2. Potential for Broader Industry Impact: Industry experts warn that if other IT firms follow TCS’s lead with further layoffs, it could create significant uncertainty and slow down the real estate market, especially in cities heavily dependent on IT sector employment.

3. Mixed Views from Real Estate Leaders: While some real estate leaders, such as those from Prestige Group, believe the impact will be minimal due to strong job creation in tech and related sectors, others express concern that layoffs and stagnant wages are already slowing housing demand among IT employees.

4. Housing Sales Already Declining: Data from Anarock shows a 20% year-on-year drop in housing sales in Q2 2025, with only 96,285 units sold compared to 120,335 in Q2 2024, indicating that the market is already under pressure.

5. Other Contributing Factors to Uncertainty: Besides layoffs, factors such as AI-driven job cuts, geopolitical tensions, stock market slowdowns, and tariff uncertainties are contributing to hesitancy in home buying, though experts believe India’s strong economic fundamentals and cultural preference for home ownership will eventually stabilize demand.

How TCS Layoffs Could Affect the Housing Market in India’s Tech Cities
Recently, Tata Consultancy Services (TCS), one of India’s biggest IT companies, announced it would lay off about 2% of its employees—over 12,000 people. This news has sparked concerns about what might happen to the housing market in major tech cities like Bengaluru, Pune, and Hyderabad, where many IT professionals live and work.
Why Does This Matter?
The IT sector plays a huge role in India’s real estate market, especially in cities known for their tech industries. Over the past few years, IT employees have been a major force behind the sale of mid-range and high-end homes. After the pandemic, there was a boom in IT hiring, salary hikes, and people moving to new cities, which all boosted the demand for homes.
But now, with TCS cutting jobs, experts worry that other IT companies might do the same. If more layoffs happen, it could make people nervous about buying homes, leading to a slowdown in the housing market. When people feel unsure about their jobs, they’re less likely to make big purchases like a house.
Different Views from Industry Experts
Not everyone thinks the impact will be huge. For example, Prestige Group, a major real estate company in Bengaluru, says that the city is still creating lots of new tech jobs. In 2024-25 alone, over 1.2 lakh (120,000) tech jobs were added in Bengaluru, which is much more than the number of TCS layoffs across the whole country. They also point out that office space is being snapped up at record rates, showing that business activity is still strong.
However, some real estate professionals in Pune are more cautious. They’ve noticed that demand from IT workers has already slowed down because salaries haven’t been growing much this year. Big layoffs could make people even more hesitant to buy homes, not just in IT but in other sectors too.
Other Factors at Play
It’s not just layoffs causing uncertainty. Ongoing global tensions, a shaky stock market, and questions about tariffs are also making people think twice before buying property. In fact, home sales in India’s top cities dropped by 20% in the second quarter of 2025 compared to last year.
Looking Ahead
While things might be uncertain in the short term, experts believe that India’s strong economy and the deep-rooted desire for home ownership will eventually help the housing market bounce back. For now, though, many people in tech cities may choose to wait and watch before making big real estate decisions.

Read more