Logged Out: IT Layoffs Leave Bengaluru’s PGs with Empty Rooms and Unpaid Dues

Bengaluru’s once-bustling paying guest (PG) sector is currently facing a tough time due to a mix of significant IT sector layoffs, new strict regulations, and a noticeable drop in occupancy rates. As the tech workforce in the city dwindles, PG operators—especially in popular IT hubs like Marathahalli, Sarjapur, and Whitefield—are grappling with unprecedented financial challenges and uncertainty.

 

Key Highlights

 

•⁠  ⁠Massive Layoffs: In 2024, Bengaluru saw over 50,000 IT employees lose their jobs, with big names like Amazon letting go of thousands. This has triggered a swift departure of tenants, many of whom have gone back to their hometowns.

 

•⁠  ⁠Occupancy Plummets: PG owners are reporting a staggering 20–30% decrease in occupancy, with some areas experiencing even sharper declines. Single PG operators are closing down at an alarming rate, while only those with multiple locations are managing to stay afloat.

 

•⁠  ⁠Regulatory Crackdown: The Bruhat Bengaluru Mahanagara Palike (BBMP) has rolled out strict new safety, hygiene, and licensing regulations following a high-profile incident. Nearly 200 PGs have been shut down for not complying, and operators are struggling to meet the new standards for security, space, and food safety.

 

•⁠  ⁠Rising Costs, Falling Demand: Utility bills and operational costs have skyrocketed, even as rental incomes continue to decline. Many tenants are now opting for short-term or daily stays instead of monthly rentals, further tightening the financial squeeze.

 

•⁠  ⁠Unregulated Competition: Illegal PGs that are undercutting prices and operating without licenses are throwing the market into disarray, making it increasingly difficult for compliant operators to survive.

 

Outlook

 

The future of Bengaluru’s PG industry looks grim. With ongoing tech layoffs, persistent regulatory hurdles, and rising costs, many operators are contemplating leaving the business. Industry leaders are urgently calling for government support and a reassessment of enforcement policies to help stabilize the sector and safeguard the livelihoods of countless small business owners.

 

Source: Economic Times, Deccan Herald, Bangalore Mirror