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Housing rentals may come down by 10-20% in IT hubs: Assocham

The decline may be steeper, up to 20% in Pune, in the next three quarters

Press Trust of India  |  New Delhi 

IT Sector
While the IT sector continues to employ over four million people, mostly in the four to five big cities, the hiring growth has subdued, Assocham pointed out

India's software and services hubs are expected to witness a 10-20 per cent reduction in over the next three quarters beginning July, as the sector experiences subdued sentiment, says a report.

Industry body said owing to the pressure on hiring and annual pay rise for employees, house owners in Bengaluru, often called India's Silicon Valley, seem to have done a reality check and are accordingly slashing the rentals.


"Even in the existing rental deeds, the are seeking better options and no hike in the monthly outgo, quoting the adverse industry outlook. With better options, the market is tilting in favour of the tenants, especially those paying above Rs 50,000 per month," noted.

Going forward, the rentals may ease at least by 10-15 per cent in Bengaluru, and Hyderabad, while the decline may be steeper, up to 20 per cent in Pune, in the next three quarters, the chamber said in its report.

Besides, said hubs based in the capital region, including Gurugram and Noida, are also likely to see 10-15 per cent correction in rentals.

While the sector continues to employ over four million people, mostly in the four to five big cities, the hiring growth has subdued, pointed out.

"The and other services like financials are among the sectors which pay well. Besides, the age profile of these employees is quite tempting for the marketers. They are good spenders and want good life.

These factors kept the markets for rentals pushing up, especially in gated and well-equipped housing complexes and societies in Bengaluru, Gurgaon, and There is certainly a pause visible," said Secretary General D S Rawat.

First Published: Mon, June 26 2017. 20:09 IST
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