Paying Guest (PG) accommodations in Bengaluru, a vital housing option for students and young professionals, are facing a fresh wave of crises just as they began recovering from pandemic-era losses. A combination of BBMP’s stricter norms, tech sector layoffs, and spikes in power and water tariffs has left many PG operators struggling, with losses averaging 20–25%.
According to the PG Owners Welfare Association, at least two PGs per locality have closed down in the last year, with Marathahalli and Sarjapur—IT sector hubs—seeing the most shutdowns. Only large operators with multiple branches are managing to survive, while single-unit PGs are increasingly shutting shop.
The BBMP recently sealed nearly 100 PGs in Mahadevapura for failing to meet trade license requirements and safety standards, especially after a PG-related murder in August 2024 triggered a city-wide crackdown. A controversial rule banning PGs in residential areas with roads narrower than 40 feet has also led to closures.
The BBMP’s registration mandate has seen limited compliance, with only about 2,500 PGs officially registered, largely because many do not meet the new criteria. Meanwhile, rising operational costs due to increased water and electricity bills are squeezing margins. Owners say they’re reluctant to hike rents, as many of their guests are students, and fear further losses.
In response to industry petitions, the BBMP is now considering relaxing some rules, including the road-width requirement, to prevent further closures and ease the burden on struggling operators.
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