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Time of India
9 hours ago
- Business
- Time of India
Where fresher-techies and students will stay in Bengaluru amid PG crisis, asks analyst? He gives two reasons why they are shutting down
Bengaluru, the Silicon Valley of India, once hailed as the gateway to every aspiring techie's dreams, is quietly witnessing a housing meltdown, one that threatens the very foundation that fuels its migrant workforce. Paying Guest (PG) accommodations, long criticised for being cramped and overpriced, are now vanishing at an alarming rate. What was once dismissed as a minor real estate shift has now become a full-blown crisis, and it's not just about IT layoffs anymore. It's about survival, shelter, and the future of first-generation professionals chasing the Bengaluru dream. In a recent LinkedIn post, investment analyst Hardik Joshi drew attention to the hidden scale of the issue. According to him, PG operators across tech hubs like Mahadevapura and Marathahalli are shutting shop—two PGs are closing every single day. He added that in Mahadevapura alone, over 100 PGs have already been sealed. The immediate triggers? A combination of mass layoffs in the IT sector and strict new compliance regulations was introduced by the Bruhat Bengaluru Mahanagara Palike (BBMP). 25% revenue loss PGs, which once thrived on a steady inflow of students, fresh graduates, and entry-level tech workers, are now reporting revenue losses of up to 25%. Many of these accommodations operate on razor-thin margins and cannot afford the cost of compliance or sustain empty beds caused by tenant exits post-layoffs. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Vinh Phuc: Unsold Furniture Liquidation 2024 (Prices May Surprise You) Unsold Furniture | Search Ads Learn More Undo The new BBMP norms, framed under Section 305 of the BBMP Act, 2020, have made things even harder. PGs built on roads less than 40 feet wide are being shut down. Those without trade licenses are being sealed. Perhaps most jarring is the fact that out of the thousands of PGs operating in Bengaluru, only around 2,500 are officially registered. New compliance rules by BBMP Some of the new compliance rules include mandatory CCTV cameras at all entry and exit points, a minimum of 70 square feet of living space per resident, and 135 litres of clean water per person per day. PGs that serve meals must also now obtain an FSSAI food safety license within three months of getting a trade license. Joshi's post frames the issue as more than a real estate correction—he calls it a disappearing ladder. He likened PGs to chicken coops, which were the stepping stone for students and freshers arriving in a new city with big dreams. With this affordable housing option vanishing, the city's accessibility is also eroding. He questions whether Bengaluru can continue to be India's startup and tech capital if the very infrastructure supporting its workforce is dismantled.
India Today
12 hours ago
- Business
- India Today
Bengaluru's PG crisis: What's behind the mass shutdowns?
Bengaluru is facing a wave of paying guest (PG) accommodation closures, with shutdowns accelerating across the city's tech corridors. Driven by a combination of stringent new civic rules and reduced demand from laid-off tech workers, the city's once-booming PG sector is under severe stress.'In areas like Mahadevapura and Marathahalli, PGs are losing up to 25% revenue. Two PGs are shutting down every day,' said investment analyst Hardik Joshi, who investigated the issue after noticing a spike in social media chatter. 'Turns out, this is a quiet crisis affecting thousands,' he wrote in a widely read LinkedIn crackdown follows a series of regulations introduced by the Bruhat Bengaluru Mahanagara Palike (BBMP) under Section 305 of the BBMP Act, 2020, last operators are now required to obtain trade licences, adhere to hygiene and fire safety standards, and provide at least 70 square feet of living space per resident. It is worth mentioning that PGs located on roads narrower than 40 feet are no longer permitted to than 100 PG kitchens were sealed in April in the Mahadevapura zone alone for violations related to town planning and licensing. Civic officials say these actions are part of a broader enforcement to the pressure, operators are now required to install CCTV cameras covering all common areas, ensure daily water supply of at least 135 litres per resident, and obtain food safety licenses if they serve meals. These requirements have driven up operational costs in a business already operating on thin Seo, secretary of the Bengaluru PG Owners' Association, told Hindustan Times that out of over 12,000 PGs in the city, only 2,500 are officially registered. 'Over 10,000 are still operating illegally without proper approvals,' she said. 'This is causing concern for investors, as BBMP can conduct raids on non-compliant properties at any time.'Once a high-yield sector offering returns as high as 6–8%, PG investments are now becoming unviable. 'Electricity is charged at commercial rates, and there are additional commercial taxes,' Seo said. 'The Bangalore Water Supply and Sewerage Board has increased water charges, which are adding to the expenses. Many PG owners are now running at a loss because they can't pass on the additional costs to tenants.'The situation is a paradox for a city built on the aspirations of migrant tech workers and students. PGs, often mocked as 'chicken coops,' were essential stepping stones for thousands moving to Bengaluru. With that ladder now vanishing, questions are rising about whether the city is pricing out the very people who power its growth. advertisement
Hindustan Times
2 days ago
- Business
- Hindustan Times
Bengaluru's paying guest crisis: Why over 200 PGs have shut down, leaving owners with 20–30% losses
More than 200-300 paying guest (PG) accommodations in Bengaluru have shut down after the city's local municipal corporation, Bruhat Bengaluru Mahanagara Palike (BBMP) implemented stringent rules for PG operation in the tech capital, Sukhi Seo, secretary of the Bengaluru PG Owners' Association, told Around 2,500 PGs are currently certified in Bengaluru, Seo said, but out of over 12,000 PGs in the city, over 10,000 are still operating 'illegally' without proper approvals. "This is causing concern for investors, as BBMP can conduct raids on non-compliant properties at any time. PG business, once considered a profitable real estate investment in the city, is seeing a downfall," she said. Last year, the BBMP introduced new regulations for paying guest accommodations under Section 305 of the BBMP Act, 2020. One of the key requirements is the mandatory installation of CCTV cameras. All PG facilities must now have surveillance systems covering all entry and exit points, as well as common areas across the property. Another rule focuses on living space, each resident must be allotted at least 70 square feet, which will be a condition for receiving or renewing a licence, experts said. In terms of water supply, operators are required to provide a minimum of 135 litres of clean water per person each day. For PGs offering meals or cooking facilities, obtaining a licence from the Food Safety and Standards Authority of India (FSSAI) is compulsory. This must be secured within three months of receiving a trade licence from the BBMP, they said. In April, BBMP health officials in the Mahadevapura zone shut down the kitchens of around 100 paying guest accommodations due to breaches of town planning norms and licensing requirements. According to BBMP officials, many of these PGs were operating in violation of zoning laws, which restrict commercial use in residential neighbourhoods where roads are narrower than 40 feet. Also Read: BBMP shuts down 21 PGs in Bengaluru over safety violations in city-wide drive: Report Several PG owners spoke to said most of them are running on 20-30% losses today compared to the profitable business it once was. Typically, return on investment (ROI) in the PG sector is close to 6-8%, way higher than apartments that command a rental yield of 3-4% in Bengaluru. This led to several owners rapidly investing in the sector to capitalise on the returns, Kiran Kumar, vice president of Hanu Reddy Realty, said. "In prime areas, owners are asking for ₹8,000 to ₹10,000 per bed, depending on the sharing type. For double sharing, the cost often exceeds ₹10,000-15,000. But if we raise rents any further, tenants tend to leave. On top of that, the Bangalore Water Supply and Sewerage Board has increased water charges, which are adding to the expenses. Many PG owners are now running at a loss because they can't pass on the additional costs to tenants," Seo said. Earlier, it was a profitable business. But now, electricity is charged at commercial rates, and there are additional commercial taxes, she said. Also Read: Karnataka: MBA intern found dead in Belagavi PG, police probe underway Civic experts have raised concerns over the growing irregularities in Bengaluru's paying guest (PG) accommodations, describing the sector as highly unregulated and increasingly problematic. 'PG owners ignore construction bylaws, tie up with real estate brokers to aggressively market the properties, and build way beyond approved limits. In prime areas like Whitefield, many PGs have nearly double the permitted number of floors. This puts pressure on local infrastructure, especially water supply, and adds to congestion, as these buildings house far more tenants than planned," said Sandeep Anirudhan, Convenor of the Coalition for Water Security and a civic expert. He pointed out that buildings over 21 meters in height are supposed to get a fire NOC. But PG owners stop at the threshold, around 7 to 8 floors, to avoid the requirement. "This creates dense clusters of people in limited spaces, and unapproved commercial setups like restaurants start popping up within residential zones. It is leading to the complete breakdown of planned neighbourhoods." 'The only solution is strict enforcement of existing laws. The government must intervene and regulate the PG sector with strong bureaucratic action,' he noted.
Time of India
2 days ago
- Politics
- Time of India
In May 2025, Karnataka cricket association's ignored civic officials' warning on illegal advertisements
Bengaluru: In a development that raises serious questions about Karnataka State Cricket Association's (KSCA) compliance and accountability, it has now emerged that BBMP had issued it a formal notice as early as May 13, 2025, warning against the unauthorised installation of LED advertisement boards inside M Chinnaswamy Stadium — nearly three weeks before the tragic RCB victory celebration stampede that killed 11 and injured scores more. Tired of too many ads? go ad free now The civic body's notice cited Section 158 of BBMP Act, 2020, and the BBMP Outdoor Signage and Public Messaging Bylaws, 2018, both of which mandate prior written permission from the chief commissioner before displaying any advertisement in the city. The act clearly prohibits commercial advertisements without approval, and such violations are punishable with up to one year imprisonment and fines of up to Rs 2 lakh. "Installation of LED displays without permission is considered unauthorised and a violation of the law. If not removed within seven days, BBMP will take action, and KSCA will be liable to pay removal charges and penalties. A criminal case may also be initiated," said Munish Moudgil, special commissioner (revenue), BBMP. Despite the clear warning, KSCA took no action to remove the illegal LED displays, which were used again during the high-profile RCB event on June 2. The LED boards allegedly contributed to crowd congestion and blocked visibility near key exits, aggravating panic during the stampede, another official said. According to the senior civic official, KSCA was explicitly directed to remove the displays within seven days of receiving the May 13 notice, failing which the civic body would undertake their removal and recover costs along with penalties. The notice also warned of criminal prosecution under Sections 326 and 329 of the BBMP Act. "This was a preventable tragedy," said the BBMP official. "If KSCA had complied with the notice, crowd movement might have been smoother, and we might not be mourning the loss of 11 lives today."
The Hindu
17-05-2025
- Business
- The Hindu
Brand Bengaluru Committee to propose creating multiple municipal corporations under GBA
The Brand Bengaluru Committee, earlier known as the Bengaluru Restructuring Committee, is gearing up to present three detailed proposals to the State government regarding the creation of multiple municipal corporations under the newly formed Greater Bengaluru Authority (GBA). This move follows the official notification of the Greater Bengaluru Governance (GBG) Act, 2024. The committee, chaired by B.S. Patil, held its first formal meeting on Saturday since the Act's notification and began working on restructuring plans. The State government has formally mandated the committee to submit its recommendations concerning the formation of corporations, boundary delimitation, and associated governance structures. The panel is expected to reconvene later this week to continue its deliberations and refine its proposals. The GBG Act was recently notified after receiving the assent of Karnataka Governor Thawarchand Gehlot. As per the notification, the GBA will govern a jurisdiction of 709 square kilometers, matching the existing juridiction of the Bruhat Bengaluru Mahanagara Palike (BBMP). However, despite the formation of the GBA, the BBMP will continue to function under the BBMP Act, 2020, until the civic body is officially restructured into multiple smaller corporations. Sources familiar with the ongoing discussions revealed that the committee is considering three governance models: splitting the BBMP into three, four, or five corporations. These options are based on the current population distribution across the city. Although senior bureaucrats had previously prepared a draft for a three-corporation model, the presence of several inaccuracies prompted the State government to seek more accurate and detailed recommendations from the committee. The panel possesses a wealth of demographic and urban data accumulated over years of research on city governance. This data will form the basis for its proposals. Committee members emphasised that their work will be independent, guided solely by empirical evidence and urban planning principles, and free from political or bureaucratic influence. Additionally, the committee will factor in the city's inevitable growth and future expansion as a core part of its planning and recommendations.
