Updated | May 28, 2017 12:06 IST
From the past few months, the drastic changes in the IT sector became the nightmare for real estate. Here the drastic changes in the sense, many IT employees have been terminated by the respective IT companies.
With this, residential real estate is expected to be impacted across the Indian IT hubs of Hyderabad, Bengaluru, Noida, Pune and Navi Mumbai, as per the study. The cities Bengaluru and Pune will face maximum risk at residential real estate because of IT meltdown. These cities not only heavily rely on job creation but also to drive office and residential real estate demand.
Over 16,000 companies, Four million people have been working in IT and BPO sector. The maximum risk of job loss at the middle management in these times of disruption increased automation and artificial intelligence.
The professionals who aged 30-40 years and above, form an average of 17 percent of the population who can easily earn 20-60 lakh per annum in the Top Indian IT hubs. Based on Indicus data, Bengaluru alone share the population of around 19 percent, over two lakh people.
These mid-level managers are an important set for the real estate developers in Bengaluru, who have not only set huge savings aside to make down-payments for a house purchase, but their choice of homes would incline more towards mid-premium housing projects. JLL India Managing Director-Strategic Consulting Shubhranshu Pani said these mid-premium housing projects as lucrative and in demand at the moment.
The serious risk of job loss under these consumers will apparently delay the residential sector in the mid-premium category. The mid-segment homes continued to gain momentum especially in the projects of reputed developers after the luxury sales have been slow down to a great extent.
If the scenario of IT meltdown further continues for a long time, it could possibly affect residential real estate, mainly in the mid-premium segment. Well, the Affordable and mid-segment homes could gain momentum after the government’ RERA act, which lowers interest rates and the current slackening of prices.
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