By Accommodation Times Bureau
The news; regarding job losses in the key information technology sector ; is threatening to enervate residential property in IT hubs ,across the country.
The scenario may force the homebuyers to lean towards major property markets, in cities including Bengaluru, Mumbai, Hyderabad, Pune, Chennai and Gurgaon . “The residential market is largely driven by sentiments and a very important factor responsible for this is sustainable job and income generation. As major chunk of the homebuyers depend on home loans, which is a long term financial obligation,” said Samantak Das, chief economist and national director, Knight Frank India.
“Whether the actual job losses are happening or not, but information floating about this is likely to shake confidence of homebuyers.”
In India currently, the IT and IT enabled services sector is proving a boost for the economy and is one of the largest job providers . Of late, media reports of layoffs at Wipro, Infosys Tech and Cognizant have been creating ripples in the industry.
However, experts said the situation definitely does not warrant such panic, especially at a time when residential market is seeing the green shoots of a recovery.
“The sentiment on ground is different as more jobs are rather expected to get shifted to India given the unavailability of skill sets there and issues related to visa policy,” said Om Ahuja, chief executive officer – residential, at Brigade Enterprises. He highlighted that India’s largest software exporter TCS has just leased 3.75 lakh sq ft office space in Bengaluru as a sign countering the scaremongering reports of layoffs.
The government on May 16 said that the IT industry has assured it that there will be no large scale job losses in the technology sector that continues to grow at 8-9 percent.