How is there no correlation to layoffs and Real Estate?

Because freshers are being hired more than layoffs

There is a lag effect, give it a few months and you will see rents and prices not increasing anymore

Because every downturn has an epicenter. Usually it's Real Estate because excesses easily pop up there. But this downturn started in IT and VC world, so for the quakes to be felt in Realty, you gotta wait more. Also, if RE is indeed suffering, it is very hard to know for outside people. RE sells in optimisms, so RE players would be creating a fake aura of super sales and huge demand, sold out units, ads in TV, banners etc. Most of these might be a lie.

Dont forget that old money bangalore ( that includes the reddy bros + mallu bros + gowdas/plantations bros) are keenly watching the real estate markets like hawks. They are always in standby to pick up real estate whenever an opportunity arises keeping the prices firm.

RTO was in part for RE. They’re happy

Our IT(laid off) makes only 0.01% of market. RE is resilient to minor changes, RE have stood Corona times. Layoffs are nothing for RE market

RE suffers when the overall economy suffers. Just layoffs in tech companies cannot be a reason for the crack in RE Space.

Real estate is hit last, because builders have already got their money they have expenses occured for, first there will be defaults on loan, monthly purchases will go down, there will be supply more than demand, builders will try to sail through this, since they have least amount of money contributed by them. In short it will need huge number of defaults, large number of months will dull in sale and huugggeee number of flats in market for sale.

I am in bengaluru since 2008 and have seen Bengaluru during 2008 Global financial meltdown and feel equipped to answer here. Bengaluru real estate never went down even during GFM of 2008. Today's layoffs haven't reached even a qtr of 2008 so I don't think this will impact RE any soon. I stay in Whitefield 2kms from ITPL and my entire road is filled with constructions and big builder projects selling as high as 11k-12k psft. I don't see that coming down any time sooner. So if anyone is thinking that layoffs gonna take down RE and will be able to buy property then, living in a bubble I would say then

I feel most people have had great returns on MFs and stocks recently. And on top of that I am assuming lot of people would also be using their runway money smartly. I personally feel the unrealistic prices will still be there till people actually start moving out of Bangalore. My assumption would be people will first give their houses for rent and move to their natives. And then people will also stop renting. And then lot of people defaulting on their loans. I might be totally wrong. But I think if the current market continues for this year in especially IT and specifically in Bangalore, we will start seeing this effect in 2025 something. Again, all of this is just my assumption without much research

India is not for beginners 💀

RE isn't suffering because due to covid, new project delivery and launches have slowed down a lot. That dried out excess supply. Post covid due to the rate hikes developers aren't able to raise capital for new launches. All these mean the actual stock/inventory is at very healthy levels especially in Bangalore. What is still at unhealthy levels is commercial real estate where several companies have either not upgraded their office space or reduced the space or closed down offices altogether. Thanks to that several active constructions are on hold. On the other hand due to low stock you can see every tom dick and Harry building on empty plots or old houses in areas with demand.

If you are talking about rent, there will be lag effect. Many owners will hold out for 6-9 months instead of lowering rent. If you are talking about buying/selling, 1. Real estate is the last place which will get liquidated in Indian families. It is seen as an investment for future generations. 2. If you don’t have loan, there is low cash outflow . Even if you don’t pay society maintenance, it is very difficult for a society to take any legal action beyond charging interest . 3. Builders will not show price drop in ads but will be open for negotiations. In Outskirts of Mumbai , I recently saw someone bargain almost 15% off for a property (of course it was adjusted to show less discount . For example, free parking, no floor rise, first 2 year maintenance free , free modular kitchen etc.)

Rent kyun nahi kam ho raha

there wouldn't be an impact because there are so many bachelor's living in PG, waiting to live a luxurious gated community life by sharing the rent, this brings more hope for everyone who has enough wealth accumulated to purchase them and rent it out

The current projects are old inventory . New launches would be slow based on reduced demand being seen now.That is where u see correlation But price decrease not happening for current unsold inventory because real estate companies just do not like to reduce prices unless of a very bad economic situation . The black money rotation gives the price levels some support

I do see some tapering on rents compared to last year because the layoffs will force people to go back to cheaper accomodations and cities. I do agree that given the amount of black money that exists in RE, you may see a small drop in rate of growth. The economic cycles will correct in a year or more and that is when people will go into a debt driven house buying spree again

Real Estate has been designed to keep the prices high using the jack of black money. Lot of black money has been sunk into real estate. They will suffer a loss of a few crores than to have a overall breakdown of real estate prices where they lose 100s of crores. Net net, they don't care if there property sells unless it sells at the price they want. Black money has not been taken as a loan or fund and so there is no hurry to repay, they have just one priority: making money. Supply demand works for businesses that have to make a tradeoff between the profit they get vs interest/OC they pay, so is useless in case of black money.

The market did not crash in 2008 when everyone were leveraged to the neck, it did not after demonetization when every transaction had to be tracked online. The time correction of prices since 2016 was tracked by youtubers saying rent as a better option. They made money, did you? I am tracking the rental market in old bangalore were the prices are stable with good quality of living. The amount of demand and rental increases since 1 year is unbelievable. There is no way for the rents to come down and with that the prices. Layoffs are happening only in startups. The PIPs in MNCs were a common occurrence every year.

Only thing which can dent not crash is a second airport like gewar 50kms from south bangalore