Caution is spreading across Bengaluru’s housing market as tech professionals rethink large home purchases. Following the 2021–23 buying boom, decisions have turned more cautious amid layoff concerns, AI-driven restructuring, stagnant prices and rising EMIs. While some buyers are steering clear of large loans and long tenures, others are choosing ₹75–85 lakh homes with EMIs only marginally higher than rent, favouring affordability over luxury amenities.
One Bengaluru professional recently shared on Reddit that he booked a flat worth ₹2.5 crore, with registration and interiors expected to push the total outlay close to ₹3 crore. The plan involved taking a ₹2 crore home loan.
“However, soon after booking, anxiety set in. What if my wife or I lose our jobs? How will we service the EMIs?” he wrote, describing worst-case scenarios of layoffs and career breaks. Despite having savings that could cover 6–12 months of expenses, he ultimately cancelled the booking and chose to continue renting. “Peace,” he concluded, signalling relief over ownership.
Another tech worker said he had decided to exit one or two investment properties in Bengaluru, accepting slightly lower annual returns to reduce exposure. The IT industry, he noted, remains in an “uncertain zone” due to overhiring during Covid, shrinking global margins and structural shifts linked to AI.
One buyer who initially backed out of a larger purchase eventually opted for a more modest home priced at ₹75–85 lakh, keeping the EMI just ₹10,000 above the prevailing rent. “I don’t need amenities,” he said, explaining that a lower loan commitment made ownership feel sustainable.
Risk management over fear of missing out
Redditors warned against stretching finances based on peak income assumptions.
“ Locking into a 20-year EMI feels very different when tech salaries and roles are less predictable than they were 2–3 years ago,” one of the Redditors wrote.
How do AI disruptions and layoffs impact Bengaluru real estate?
Real estate experts say Bengaluru’s residential market remains deeply linked to the technology industry, which continues to undergo structural shifts. Over the past year, several tech companies have announced workforce reductions as part of cost rationalisation and operational restructuring. At the same time, rapid advances in automation and artificial intelligence are changing hiring patterns, with companies prioritising specialised skills while slowing recruitment for conventional IT roles.
According to data from Vestian Research, the IT-ITeS sector accounted for nearly 40% of total office leasing in Bengaluru, underscoring the city’s economic reliance on technology-driven businesses. Industry experts warn that sustained layoffs or prolonged hiring slowdowns among global tech firms could dampen home-buying sentiment and soften rental demand, particularly in micro-markets dominated by tech employees.
Despite these headwinds, some of the experts argue that the sharp rise in Bengaluru’s home prices after the pandemic was not purely speculative. Sunil Pareek, Executive Director at Assetz, said the surge followed an extended period of subdued growth. Between 2014 and 2020, residential prices increased by only about 3–3.5% annually, even as incomes rose and buyer aspirations strengthened.
Looking ahead, Pareek expects moderation rather than reversal. While the rapid appreciation seen in the last three to four years is unlikely to persist, he does not foresee a sharp downturn. Instead, he anticipates a transition toward steadier, more measured growth as the housing market aligns with evolving employment dynamics in the tech sector.
(Disclaimer: This report is based on user-generated content from social media. HT.com has not independently verified the claims and does not endorse them)
