Due to their reliance on the IT workers, hostel owners in the IT corridor are also joining managers and employers in demanding an end to work-from-home policies. Their companies have suffered greatly as a result of the pandemic.
The IT Corridor Hostels Association recently held a demonstration in front of Infosys in Pocharam, demanding that employers mandate daily attendance at work.
Hostel Owners Demand To End Work From Home
Since more people are working remotely, the hostel owners claim that while many of them took out loans to expand their facilities in order to meet the demand for IT, they are finding it difficult to make ends meet and pay back their debts.
As to Amarnath Reddy Pasam, the head of the association, the government had provided subsidized rates for plots to firms, meaning that the advantage extended to everybody and not just specific companies.
About 700 apartments have been converted into hostels in Pocharam; another 50 are located in the IT corridor, and there are roughly 200 more in places like Jodimetla and Uppal. All of these establishments mostly depend on IT workers who work outside of Hyderabad.
In order to discuss their financial difficulties, association members have scheduled meetings with the chief minister, IT minister, and secretary of IT because the majority of these hostels are currently operating at less than 20% occupancy.
Building Owners Suffering Financially Too
Building owners who have allowed hostels to occupy their spaces are also suffering greatly financially as a result of the sharp decline in rental income during the previous two to three years.
A building owner revealed that, compared to before the pandemic, he is making a lot less money from his properties—just two of his three buildings are rented out—while still having to pay over
One building owner revealed that, compared to before the pandemic, he is making a lot less money from his properties—just two of his three buildings are rented out—while still having to pay back more than ₹2 lakh in loans each month.
The prevalence of work-from-home opportunities is hurting not only hostels but also neighborhood businesses, housekeepers, chefs, and merchants because many of them depend on the IT workforce for their income.
About 4,500 hostels in Greater Hyderabad are mostly reliant on IT workers, but while post-pandemic occupancy has increased in locations like Hi-Tec City, other districts are experiencing a fall as a result of layoffs and a lack of new hires.
Less than 30% of the 200 beds in one hostel are filled, which reflects the larger difficulties faced by other hostels in the area. As a result, the management of that hostel shared that they had to cut back on their housekeeping and cooking staff.
Pocharam hostel operator P Siva Kumar pointed out that work-from-home policies are hurting not just the hostel industry but also other industries that depend on the actual presence of IT workers.
