Will TCS layoffs hit real estate sales?

Concerns about job cuts at Tata Consultancy Services (TCS) and other IT companies have sparked concerns about what they could mean for the real estate market, especially in tech-heavy cities like Bengaluru and Hyderabad. But Vijay Agarwal, Managing Director at Equirus Capital, thinks the impact may be limited, and could even be offset by rising hiring in Global Capability Centres (GCCs).”Any job cuts by TCS or other similar companies may be absorbed by the GCCs,” Agarwal said. He added that it will take another two to three quarters to assess how the situation evolves.

Bengaluru, where IT professionals account for roughly 40% of home sales, might feel a short-term hit. However, housing demand from listed developers is holding up, with average home prices around ₹2 crore. Unless job losses become more widespread, the overall market should stay stable.

Also Read | TCS to cut 2% of global workforce in mid and senior level roles over next 12 monthsAgarwal pointed to the steady rise in demand from GCCs in cities like Hyderabad and Bengaluru. “Hyderabad has become an attractive market for GCCs from the rental perspective and housing cost perspective,” he said. Companies are also looking to diversify locations and often choose between these two cities when setting up additional centres.

On the supply side, developers like Lodha Developers, DLF, Oberoi Realty and Prestige Estates are still posting healthy pre-sales. The temporary dip seen during the April–June 2025 quarter, Agarwal said, were more due to external events and geopolitical uncertainty.

Office space demand is also getting a boost from GCCs. “Generally, if you see 20 to 30% of the leasings are absorbed by GCCs,” Agarwal said, pointing to rising headcounts as a positive trend for the property market.Also Read | Digant Haria of GreenEdge Wealth backs niche NBFCs amid rate cuts, favours India Shelter and L&T Finance

Developers focused on the ₹1–2 crore price range, such as Prestige Estates, Brigade Enterprises, and Sobha, are best placed to benefit, especially in southern cities.

Sushil Kumar Modi, Executive Director-Finance at Lodha Developers, echoed that view in a recent CNBC-TV18 interview. He said demand in cities like Bengaluru remains resilient. “There are numerous facets of the industry which continue to do well,” he said in an interview with CNBC-TV18.

He also stressed that real estate supports several other industries and remains a key contributor to economic activity. “Real estate, in any case, is a precursor, because it enables many other industries to perform – be it steel, cement, cable, tile, or numerous other industries,” Modi added.

For the full interview, watch the accompanying video

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