Bengaluru PG Crisis: Over 200 Shut Down Amid Stricter Regulations.

Bengaluru’s once-thriving paying guest (PG) sector is now in turmoil, with over 200-300 PGs shutting down due to stringent rules enforced by the BBMP under the BBMP Act, 2020. Of the 12,000 PGs in the city, only 2,500 are officially certified. New mandates include CCTV surveillance, 70 sq ft per resident, 135 litres of water per person daily, and FSSAI licences for kitchens. Non-compliant PGs face raids, closures, and mounting losses.

Owners report 20–30% losses due to rising operational costs, commercial electricity rates, and water charges, while rent hikes are resisted by tenants. ROI, once at 6–8%, has plummeted. Experts warn of illegal construction, zoning violations, and infrastructure stress in residential areas. In prime zones like Whitefield, overbuilt PGs are common, creating congestion and safety issues. Civic leaders call for urgent regulation and strict enforcement to bring order to Bengaluru’s chaotic PG landscape.