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Once the heartbeat of Bengaluru’s booming urban housing scene, the Paying Guest (PG) accommodations that catered to thousands of young techies and students are now gasping for survival. Hit hard by a chain reaction of IT layoffs, stringent civic regulations, and ballooning utility bills, PGs across the city are shutting down in alarming numbers, leaving owners in despair and rooms eerily vacant.
According to a report from the Deccan Herald, after barely recovering from the financial devastation caused by the pandemic, PG owners in Bengaluru were hoping for a slow but steady return to normal. That fragile hope has been dashed by a brutal cocktail of job losses in the IT sector—one of their biggest client bases—and new, unrelenting rules from the Bruhat Bengaluru Mahanagara Palike (BBMP). According to industry insiders, the average loss being reported now stands close to 25%, forcing many to shut shop entirely. The once-bustling corridors of PGs in IT-centric hubs like Marathahalli and Sarjapur are now disturbingly quiet.
‘Two PGs Shut Down in Every Locality’
In tech-heavy neighborhoods, the PG landscape is undergoing a silent collapse. Aruna Kumar D T, President of the PG Owners Welfare Association, painted a grim picture speaking with Deccan Herald: “Only those with multiple branches are managing to survive. Independent operators are closing down at a staggering pace.” Many PGs that flourished just a few years ago are now ghost buildings with padlocked doors and dusty signboards.The scale of closures is unprecedented. At least two PGs in every locality have ceased operations, with the hardest hit being areas that once drew tech professionals from across India.
Crackdown After Crime: New Rules Prove Ruthless
The storm intensified in August 2024 when a murder at a PG triggered a city-wide crackdown. BBMP and police authorities swung into action, sealing nearly 100 PGs in Mahadevapura alone. Most failed to produce valid trade licenses or meet safety and hygiene norms that were suddenly—and strictly—enforced. What was meant to improve safety has inadvertently dismantled a crucial housing segment.A particularly harsh regulation mandates that PGs cannot operate on roads narrower than 40 feet—a rule that has proved catastrophic for the countless PGs built in Bengaluru’s labyrinthine residential bylanes. According to Sukhi Seo, secretary of the Bengaluru PG Owners’ Association, “Many of the PGs that came up in Marathahalli to meet rising demand were technically illegal. Now they’re gone.”
Soaring Costs, Silent Guests
The situation is exacerbated by a steep hike in electricity and water tariffs. PG owners, already reeling from falling occupancy, are unable to balance rising operational costs without hiking rents. Yet, most remain unwilling to transfer this burden to students and young professionals who are their core clientele.“We want to keep rents affordable for our guests, especially students,” Seo said. “But the increasing costs and compliance expenses are draining us. Many owners are losing money just to keep the doors open.”
BBMP Considers Easing the Noose
Recognizing the mass exodus from the PG industry and the mounting pressure from owner associations, the BBMP is reportedly considering rolling back some of the tougher regulations. Among the relaxations being discussed is the contentious 40-foot road-width criterion—a move that could breathe life back into the sector if passed.Despite making registration mandatory, the civic body has managed to officially register only about 2,500 PGs—likely because many more fail to meet the stringent parameters currently in place.
A Vanishing Lifeline for Young Migrants
The unraveling of Bengaluru’s PG network comes at a cost beyond real estate metrics. These accommodations have long been the entry point into the city for thousands of young dreamers—fresh graduates, startup employees, and tech professionals chasing opportunities in India’s Silicon Valley.Now, as layoffs displace workers and rules shut down shelters, many are left scrambling for affordable housing in a city where conventional rentals have skyrocketed. For the PG ecosystem and the young lives it supports, the struggle is far from over.
