A. Introduction: The silent housing revolution behind the tech surge
When we talk about India’s thriving technology ecosystem, the first images that come to mind are bustling IT campuses, glass-walled corporate towers, and fast-growing global capability centres (GCCs). What often goes unnoticed is the parallel transformation of India’s residential real estate, a sector riding the wave of tech expansion.
With tech revenues projected to touch USD 283 billion in FY 2025, and employment numbers crossing 5.8 million professionals, this sector is shaping not just the office landscape but also where and how Indians live. Every new GCC set up in Bengaluru or Hyderabad, every AI lab in Chennai, and every digital-first startup in Pune creates ripple effects on housing demand, rental yields, community planning, and urban sprawl.
Let us explore the deep connection between India’s tech growth and its housing markets, highlighting how cities, developers, and homebuyers are navigating this new reality.
1. Tech Jobs = Housing Demand: A direct correlation

Fig 1. Massive growth % in Bangalore in both rental & price growth
The most straightforward impact of India’s booming tech ecosystem on housing lies in job creation. Every time a multinational sets up a GCC or expands operations, thousands of employees migrate to that city, creating immediate demand for housing.
• In Bengaluru, which absorbed nearly 47% of GCC leasing demand in 2024, residential absorption has consistently followed office growth. In micro-markets like Whitefield and Outer Ring Road, the rental index rose by 12–15% YoY in 2024, primarily driven by tech employees.
• Hyderabad, which attracted global firms for cost-efficient operations, saw residential launches grow by 22% YoY in 2023–24, with HITEC City and Gachibowli emerging as hotspots.
• In Chennai, GCC-led growth in OMR (Old Mahabalipuram Road) has spurred steady housing demand, leading to a price increase of nearly 10% YoY
Essentially, the tech sector doesn’t just fill office towers, it fills apartments, villas, and gated communities around them.
2. The rise of tier-2 cities: Affordable housing meets tech expansion
While Tier-1 cities remain the crown jewels of tech growth, a noticeable shift is underway toward Tier-2 and Tier-3 cities. As GCCs and IT firms diversify operations beyond metros, housing markets in these cities are experiencing an unprecedented surge.
Cities like Coimbatore, Kochi, Indore, Jaipur, and Chandigarh now host more than 190 GCCs collectively. For employees relocating here, the cost advantage is significant:
• Housing is 25–30% cheaper than metros.
• Rental costs are 40–50% lower, making them attractive for young professionals.
For developers, this presents a new frontier. Residential launches in these markets often see higher absorption rates because demand significantly outpaces supply. For investors, Tier-2 cities offer better rental yields with some micro-markets showing 5 to 6% annual rental returns, compared to 3 to 4% in metros.
This decentralization of tech has unlocked housing growth corridors beyond the traditional IT hubs.
3. Lifestyle upgrades: From budget apartments to premium living
The rising salaries in the tech industry have shifted homebuyer preferences. Tech employees, particularly millennials and Gen Z professionals, are driving demand for upgraded housing.
• In Bengaluru and Pune, developers report that 2 and 3-BHK apartments in gated communities with amenities like co-working spaces, gyms, and green zones are selling faster than budget apartments.
• In Hyderabad and Chennai, there’s increasing interest in premium apartments and villas among mid-senior tech professionals, often in the INR 1 to 3 crore bracket.
• Co-living and rental housing are also seeing demand, especially from the younger workforce that prefers flexibility.
This trend shows that housing demand is no longer just about affordability; it’s about lifestyle, proximity to tech parks, and community living.
4. The data centre boom: Indirect housing growth driver
The surge in India’s data center industry from 350 MW in 2019 to a projected 1,645 MW by 2026; also fuels housing indirectly. Data centres attract highly skilled professionals, engineers, and support staff, all of whom contribute to local housing demand.
Cities like Mumbai, Chennai, and Pune, which account for 80% of new capacity additions, are witnessing not only commercial land use changes but also residential expansions in adjoining suburbs.
For example, Navi Mumbai’s data centre cluster has already led to demand spikes in Panvel and Airoli’s residential markets.
5. Rental market transformation: A tech workforce effect
India’s rental housing has long been informal and fragmented, but the influx of tech workers is professionalizing this market.
• In Bengaluru, rents in Whitefield rose by 18% in 2024, making it one of the highest rental growth micro-markets in India.
• In Hyderabad, HITEC City saw rentals increase by 12%, with landlords now preferring long-term corporate leases to individual tenants.
• Co-living operators like Zolo, Stanza Living, and YourSpace are capitalizing on the demand, providing structured rental solutions to tech professionals.
The tech sector is thus reshaping India’s rental housing into a more organized and scalablemarket.
6. Placemaking and integrated townships: Living near work
As GCCs evolve from cost-driven centres to innovation hubs, tech firms are increasingly seeking placemaking environments, locations where employees can live, work, and play in proximity.
This has pushed developers to create integrated townships around IT corridors, featuring:
• Residential blocks
• Office parks
• Retail spaces
• Schools and healthcare facilities
Projects in Electronic City (Bengaluru), HITEC City (Hyderabad), and Hinjewadi (Pune) showcase this trend. These ecosystems reduce commute times and enhance work-life balance, making them highly desirable for tech workers.
7. Sustainability and smart homes: A tech-savvy buyer’s choice
Tech professionals are among the most environmentally and digitally conscious homebuyers. This is shaping residential supply in two keyways:
• Green Housing: Projects with solar panels, rainwater harvesting, and energy-efficient designs are preferred.
• Smart Homes: Demand for IoT-enabled homes, automated lighting, and app-controlled security is growing, particularly in Bengaluru and Gurugram.
Developers aligning with these preferences are commanding premium pricing and faster sales cycles.
8. Investment perspective: Tech-driven housing as a long-term asset
For investors, the link between tech growth and housing demand presents a clear opportunity:
• Capital Appreciation: IT corridors like Whitefield (Bengaluru) and OMR (Chennai) have delivered 10–15% YoY price growth in recent years.
• Rental Yields: Micro-markets near IT parks consistently deliver higher-than-city-average rental yields.
• Resilience: Even during downturns, housing demand in tech-centric cities tends to be more resilient due to steady job creation.
With India projected to add over 600 new GCCs by 2030, the housing market is positioned for sustained, tech-led growth.
9. Challenges ahead: Balancing growth and affordability
While the impact is largely positive, challenges remain:
• Affordability gaps: As prices soar near IT hubs, middle-income buyers are pushed to peripheral areas.
• Infrastructure strain: Roads, metros, and civic facilities often lag behind housing demand, leading to congestion.
• Speculative investments: Over-heating in certain micro-markets could create short-term volatility.
Addressing these requires policy alignment, infrastructure planning, and balanced housing policies.
Conclusion: Tech as the Invisible Hand Shaping Homes
India’s tech ecosystem is more than just a commercial story it’s a housing story. Every GCC, every startup, and every data centre is quietly transforming where and how Indians live.
From luxury apartments in Bengaluru to affordable homes in Coimbatore, from organized rentals in Hyderabad to sustainable smart homes in Chennai, the impact is everywhere.
For homebuyers, this means rising opportunities but also rising costs. For developers, it’s a chance to innovate and cater to an evolving workforce. And for investors, it signals that residential real estate, when linked to tech growth, is one of the most resilient asset classes in India’s future.

Source: Excerpts from JLL Research report "India's Tech Ecosystem" authored by Ankit Bhartiya

Author: Sumedha Das