Umesh Gowda H.A.
Bengaluru’s residential real estate market, for over two decades or so, has moved in sync with the growth in the technology sector. And therefore, every time there are reports of layoffs across global technology companies, the focus shifts to the city’s housing market with questions like whether it could lose momentum, or whether the city’s housing market will crash etc. Yet, the market has consistently demonstrated that its growth story is far more diversified and resilient than it is often perceived to be.
While technology continues to be Bengaluru’s largest employment engine, the city’s economic base has broadened significantly over the past few years. Global Capability Centres (GCCs), engineering and R&D firms, aerospace, biotechnology, fintech, manufacturing, electric mobility, semiconductor design and deep-tech startups have collectively strengthened the city’s employment ecosystem. Consequently, housing demand today is supported by a much wider base of end-users than ever before.
Bengaluru accounts for nearly 25 per cent of the total housing sales and 29 per cent of the total housing supply in top cities. The city saw the sales of nearly 35,000 units and supply of 49,000 units in the first half of 2026. The nature of the recent technology layoffs also deserves perspective. Most workforce rationalisation has been concentrated among global companies recalibrating their international operations rather than reflecting a structural weakness in Bengaluru’s economy. At the same time, many technology firms continue to hire selectively in high-value domains such as artificial intelligence, cloud computing, cybersecurity, semiconductor engineering and data science. This transition is creating new employment opportunities that continue to generate housing demand.
Another reason for Bengaluru’s resilience is its affordability relative to other major metropolitan markets. Despite healthy price appreciation over the last few years, the city continues to offer better value compared with several premium micro-markets in Mumbai, Gurugram and Delhi-NCR. In popular jargon, the residential rental yields in the city are high as compared to other cities. This affordability allows first-time homebuyers and upwardly mobile professionals to enter the market, ensuring that demand remains largely end-user driven rather than purely speculative. Infrastructure development has further strengthened the city’s long-term residential outlook. The expansion of the Namma Metro network, the Peripheral Ring Road, the Satellite Town Ring Road, suburban rail connectivity and improved airport access are opening up new residential corridors while reducing travel time between workplaces and emerging housing destinations. These investments are encouraging more balanced urban growth and creating opportunities beyond the traditional IT corridors.
Equally important is the evolution of buyer preferences. Homebuyers today prioritise larger living spaces, integrated townships, community amenities and developments that offer a better quality of life. Developers have responded by launching thoughtfully planned projects that cater to these changing aspirations, resulting in healthy absorption even as supply has increased.
Bengaluru also continues to attract strong interest from NRIs and long-term investors, who view the city as one of India’s most stable residential markets. Consistent office leasing, healthy rental yields and sustained employment generation reinforce confidence in residential investments despite short-term global uncertainties.
Every economic cycle presents challenges, and the technology sector will continue to experience periods of adjustment. However, Bengaluru has repeatedly demonstrated its ability to reinvent itself by embracing new industries, attracting global investments and creating high-quality employment. Its diversified economy, robust infrastructure pipeline, strong end-user demand and relatively balanced affordability continue to distinguish it from other markets.
The city’s housing market is therefore not merely surviving the current phase of technology sector recalibration—it is evolving into a more mature and resilient ecosystem. That is precisely why Bengaluru continues to outperform many other Indian cities and remains one of the country’s most compelling long-term residential real estate destinations.
(The author is chairman and founder of Sanjeevini Group; views expressed are personal)
