We've witnessed so many layoffs in the past year and this continues to be an upward trend. Bangalore is a city of IT professionals and these layoffs seem to have no effect on the real estate. Is this because the numbers are negligent? I don't think that's the case, my company has been laying off people since last year. It was never public. I'm sure there are lots of such companies. What are your thoughts?!
Because freshers are being hired more than layoffs
I recently learnt through a newspaper that major service companies have only hired a total of 70-80k freshers. Which used to be a number in lakhs.
freshers aren’t buying flats
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.
Real estate is black money sink. And secondly most people buy Re estate after 7/8 of exp. They Are well funded. The number of people distress selling thier property is small, if not it would have made news.
Sobha which is claims each flat is 2 cr plus look at their last quarter PAT meare 15 cr lol..
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.
I agree, but these people are the ones who are selling, we are the consumers. If we can't afford to pay them, the prices should come down.
Will you leave Bangalore if it becomes too much unaffordable? Nobody leaves Mumbai, New York, California due to that reason
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
0.01% of the overall market, maybe yes. But in Bangalore that may not be true, IT makes up a large chunk of the city's economy.
That 0.01% is the main TG and the one who is not laid off will hold their money due to fear of getting laid off.
The economy went down? Yes. Did it affect all kinds of companies? Yes
Did the banks fire any one? No Did the Railways fire anyone? No Did the media agencies fire anyone? No
Did Large Tech companies and IT fire people? Absolute...
Not the way it works. It's a function of how fast an industry grows -> The faster it is, the more you have to hire i...
#acche din
