IT Layoff’s fuel Real Estate Slump

Published on Feb 24th-2015
Bangalore real estate trends,analysis,real estate news
Already reeling under layoffs by IT giants TCS, Cisco, IBM, Altisource and others, Bangalore’s tech community was delivered a knockout punch with news that iGate may lay off 10% of its workforce which is around 2500 to 3000 people over the next quarter. The layoffs are partly because of huge bench strength that the company created after it moved from just-in-time hiring to hire-for-growth model.

This news is certainly rubbing salt into wounds of the Bangalore real estate sector . After a disastrous festive season with lukewarm sales, most of the builders found it really hard to generate leads, forget sales.

However, the builders are quite optimistic that sales will improve and are only witnessing a short term slump. The first 2 months of 2015 has seen many launches from Purva, Prestige, Sobha, Nitesh and other builders. These launches have added more than 10000 units in the market at various neighborhoods.

With the union budget expected this week, builders are hoping for some tax benefits and rate cuts by RBI sometime soon.

Abilash can be reached at abilash@bangalorenest.com
image source - cwc.org.au