Flipkart’s decision to distribute Rs 5,600 crore among its approximately 19,000 employees has brought cheer to Bengaluru’s real estate sector.
Sources in the industry predict that a significant portion of this money will flow into the real estate market, with Flipkart employees potentially investing around Rs 2,800 crore in properties across the city in the coming months.
Investing in Bengaluru Real Estate
With half of the distributed amount potentially being used for property investments, real estate consultants estimate that Flipkart employees may collectively purchase properties worth Rs 2,800 crore in Bengaluru.
The surge in demand is expected to particularly impact premium housing projects in the Bellandur area, where Flipkart’s office is located.
Retaining Talent Amidst Industry Challenges
The distribution of funds comes as Flipkart focuses on retaining its talent and even continuing with new hirings, in contrast to some other Indian startups that have had to downsize due to financial challenges.
Tax Benefits Drive Property Investments
Many Flipkart employees are considering property investments to offset capital gains tax.
Buying bigger houses allows them to save on taxes, making it an attractive option for the company’s employees.
Some real estate companies in the Bellandur locality, such as Adarsh, Mantri, Embassy, and Prestige, have already seen interest from Flipkart employees looking for 4 BHK and villa properties ranging from Rs 3.5 to 5 crores.
Economic Impact on Real Estate
The influx of investment from Flipkart employees is likely to have a positive economic impact on the real estate market in Bengaluru, providing a boost to the sector amidst challenging times.
