Paying Guest (PG) accommodations, once the backbone of affordable housing for students and techies in Bengaluru, are now disappearing fast.
A combination of Information Technology (IT) layoffs, strict civic regulations, and rising operational costs has triggered a wave of closures across the city, especially in tech hubs like Marathahalli, Sarjapur, and Mahadevapura, as per a report by Deccan Herald.
According to the PG Owners Welfare Association, the average loss per property has touched 25 per cent, forcing many independent owners to shut down.
“Only those with multiple branches are managing to survive,” said Aruna Kumar DT, the association’s president.
The situation worsened after a murder at a PG in August 2024 led to a city-wide crackdown by the Bruhat Bengaluru Mahanagara Palike (BBMP). Close to 100 PGs were sealed in Mahadevapura alone for lacking trade licenses or failing to meet fire and safety norms.
One of the most controversial rules introduced bans PGs from operating on roads narrower than 40 feet, a death blow for many establishments in Bengaluru’s inner bylanes.
Adding to the burden, hiked electricity and water tariffs are making it impossible for owners to maintain services without raising rents. But most are reluctant to pass on the costs to their core clientele, students and young jobseekers, fearing further drop in occupancy.
Owner associations are now urging BBMP to relax some of the stringent conditions. Reports suggest the 40-feet road-width rule may be under review.
With over 2,500 PGs registered officially, and hundreds more operating informally, the decline spells trouble for thousands who rely on these spaces as stepping stones in a costly city, added the report.
