Bengaluru real estate: Techies become cautious about homeownership amid layoffs and AI disruption
As Bengaluru’s once-thriving IT workforce grapples with layoffs, the rise of Artificial Intelligence, and weakening global demand, the dream of homeownership is being replaced by caution and fear. Even a sharp price correction may not be enough to draw tech professionals back into the housing market, according to prospective buyers and Reddit users.
Reddit discussions reveal a striking shift in sentiment, from ‘when to buy’ to ‘why buy at all.’ What was once seen as a sign of success, owning a home in a metro area, is now viewed as a financial trap in an era where even white-collar jobs no longer feel secure, they said.
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AI, layoffs, and the fear of commitment
Tech professionals say that a typical ₹1 crore home loan means an EMI of around ₹1.3 lakh a month, a commitment that looks manageable only as long as the paychecks flow steadily. But as one Reddit user wrote, “The moment your job is gone, arranging ₹1.3 lakh becomes a nightmare.”
The rise of AI has intensified the challenges faced by tech professionals. Roles once considered stable, such as data analysts, designers, animators, and even real estate sales representatives, are increasingly being automated. “Layoffs are happening across all white-collar jobs,” one user noted. “Even the cold calls I get from real estate brokers these days are from AI bots.”
This uncertainty has made many techies rethink their life plans. “I won’t dare to buy something on EMI because I never know when I’ll get my next job,” said one senior engineer with over a decade of experience. “The only way I can buy it is if I can pay 100% upfront. Otherwise, the stress isn’t worth it.”
“Home loan duration is a minimum of 10-15 years. For a ₹1 crore home loan, EMI is 1.3 Lakh, which looks small and manageable. Until you have a job. The moment the job is gone, arranging 1.3 Lakh becomes a nightmare. Today in tech, AI is advancing very fast and expansion has stopped. Overall, experience techies numbers going down. Which indicates that no one can predict what will happen in the next 10 years. Saturation is a very big cause of layoffs,” the post said.
Meanwhile, others point out that the market is now driven less by salaried professionals and more by high-net-worth individuals (HNIs). “Most techies who made their fortune in the last three decades are already buying plush homes,” one comment read. “Builders are targeting the rich, not the entry-level techie.”
Still, a large section of younger professionals prefer flexibility. They see greater sense in renting and investing their savings in mutual funds or equities rather than being “locked into a 15-year loan with no peace of mind.”
As one comment summed it up: “Even if the price drops by 40%, techies won’t buy just like that. Price is important, but trust, logic, and future value matter even more.”
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Will real estate prices go down in Bengaluru?
Bengaluru’s post-pandemic property surge was less about sudden frenzy and more about the market finally catching up after years of subdued growth, said Sunil Pareek, executive director at Assetz. Between 2014 and 2020, home prices in the city rose only around 3–3.5% annually. During this period, incomes rose, aspirations shifted, and, following COVID, the desire to own a home became significantly stronger. “Because prices were flat for so long, the 60–70% increase after the pandemic was overdue,” Pareek said.
However, despite ongoing layoffs in the tech sector, a core driver of Bengaluru’s housing demand, Pareek does not expect a price correction. Instead, he predicts a more moderate growth phase. “I don’t think prices will rise at the same pace as the last three or four years, but I also don’t see stagnation,” he said.
He explained that demand in Bengaluru remains robust, while the number of developers capable of delivering large-scale supply is relatively small. This means the market continues to operate with an inventory overhang of around 12–14 months, a level that typically supports price stability.
As a result, Pareek expects annual price appreciation of 5–7%, driven not by speculation but by sustained demand that continues to outpace available supply, even in a period of job market uncertainty.
Real estate agents say that enquiries in Bengaluru’s key tech corridors, including Whitefield, Sarjapur Road, and the Outer Ring Road belt, have dropped by an estimated 15–25% in the past few quarters. This has coincided with a slower job market, prolonged global tech uncertainty, and changing immigration policies such as the tightening of H-1B eligibility.
“Buyers in these locations are far more cautious today,” said Sunil Singh, managing director of Realty Corp. “When job security feels uncertain and the costs of homes in these areas remain extremely high, many prospective buyers are either delaying purchases or looking toward more affordable micro-markets in peripheral areas. Price sensitivity has become very real.”
