Does Big Lay-Off In IT Sector Impact On Realty Market? – An Overview

Indian IT companies are in process of firing employees on massive scale. This move is subsequent result of sluggish market prospective anticipated in India’s 150 billion dollar IT industry. Earlier in this FY, country’s apex trade body ASSOCHAM warned about industry growth prospect aggravated by the rising rupee value leading to lower realizations for software export. The IT sector of India has been the major employment resource of the country. But the recent news of job cut rates in the IT industry rattles the real estate industry as well.

We will tell you how the process will hit the realty market. The demand of residential apartments as well as commercial apartments will take south at the side of downsizing in the country’s major job driver. Mostly, salaried people buy home on bank loans and do all EMI repayments with their monthly income.  For instance a large number of residential units have been bought on bank loans as the close proximity of the IT hub of West Bengal. Simultaneously new start-ups are blooming with the requirements of mid-ranged commercial space requirement nearby the physical place of the IT industry. Now job escalation would make real estate industry suffer in a big way.

As per the recent market speculation more than 1 lac IT people will lose their jobs in the coming FY. America will reportedly stop doing the out sourcing which will straightway affect the BPO industry of India. On the other hand technological development, automation and artificial intelligence will be the watchdog of the industry progress. Big IT giants won’t feel to extend the business capacity or in other words they won’t have significant reasons to buy commercial property in Kolkata and other major cities of the country. 1 lac job losses would roughly render a slash of 8 million sq ft in real estate volumes, considering that per employee space consumption in the IT sector today is roughly 80 sq ft.

Kolkata’s IT sector is relatively small than major IT hubs in Bengaluru, Gurugram, Hyderabad and Pune. For, the city is not that largely dependent on the IT industry. It’s expected that Kolkata’s real estate market will be less terror-stricken by the IT cut down. Government has assured there will be no such major retrench in Indian IT sector. Government has planned to open 3 huge IT parks in Kolkata- one each in Durgapur, Darjeeling and Kalimpong.

Affordable housing sector is the only steady investment sector which is continuously attracting buyers from the bottom of the pyramid. Currently it has emerged as the growth driver of the realty industry. IT industry will have to seek micro and small medium enterprise for their necessary production, in joint collaboration. There will be increasing opportunities for the start up industry in the coming days, which will lead more job opportunities in micro market.


-LNN (Liyans News Network)

No comments:

Post a Comment