Bengaluru tech layoffs: Is it the right time to invest in real estate? Netizens weigh in

Redditors have taken to social media to debate whether it’s the right time to invest in Bengaluru's real estate market or if it’s wiser to wait at least six months before making a move. A key concern driving this discussion is the impact of artificial intelligence (AI) on the job market, particularly in the IT sector, which has long been the backbone of Bengaluru's housing demand.

"AI is reshaping the job market, especially in IT—the driving force behind Bengaluru's housing demand. With layoffs and hiring slowdowns, property prices may dip soon. If you're planning to invest, wait at least six months to see where the market is heading. Rushing in now could mean overpaying for a property that loses value!" one Redditor commented.

Several experts have argued that Bengaluru’s real estate market is currently overpriced, with a correction likely to occur soon. If this happens, those who invest now may risk overpaying for properties that could lose value in the short term.

With AI-driven automation reshaping industries, many IT companies are experiencing layoffs and a hiring slowdown. According to netizens, this uncertainty in employment trends is making investors cautious, as a weaker job market could reduce housing demand and potentially lead to a drop in property prices.

Also Read: Bengaluru rentals stay high as landlords capitalize on return-to-office demand, but tenants remain wary

Affordable apartments in Bengaluru are few and far between

One of the Redditors pointed out a dearth of affordable apartments in the IT capital.

According to a report by ANAROCK, in north Bengaluru, Thanisandra Main Road saw capital values rise 67% to ₹8,900 per sq ft at the end of 2024 from ₹5,345 in 2021. The average rental value surged 62% to ₹33,200 in the same period. And in south-east Sarjapur Road, monthly rental values surged more (76%) than capital values (63%) since 2021.

According to another report by NoBroker, the launch of mid-end housing projects, with properties priced between ₹40 lakh and ₹80 lakh, in Bengaluru dropped by 29% in 2024. This decline reflects the market's shrinking affordability, driven by a lack of budget-friendly options.

"So, buying an apartment at current rates is no longer feasible for the average-earning individual. Those who can afford it are still purchasing, especially in the IT sector, where salaries remain strong. With many couples both working, they can manage high-value properties around ₹1 crore—one person's income covers the EMI, while the other’s salary is available for savings and household expenses," one of the Redditors added.

Also Read: Bengaluru homebuyers struggle with affordability crisis as mid-end housing launches fall by 29%, says NoBroker report

'AI is here to stay'

One of the Redditors wrote, "AI is here to stay. Headcount reduction is already happening in every company. Number of people needed is less."

Another user pointed out this is similar to the historical shift when phone lines became automated. Previously, operators had to connect calls by manually plugging and unplugging cords, but automation eliminated the need for human intervention.

Several experts have argued that Bengaluru’s real estate market is currently overpriced, with a correction likely to occur soon. If this happens, those who invest now may risk overpaying for properties that could lose value in the short term.

Local real estate brokers have indicated that Bengaluru is already experiencing a correction in rental prices.

Unlike the rental market of 2022-2023, when tenants faced challenges finding available housing, the current supply is more balanced. This has provided prospective tenants with greater flexibility and a broader selection of apartments across various areas.

"This year, we saw a major supply hitting the Bengaluru market. Areas like Electronic City and south Bengaluru like Banashankhari and JP Nagar are already witnessing a major rental correction in property prices of about 5-10%. I have come across several landlords who have already started reducing rents by ₹2000-5000," Riyaz Ahmad, owner of Access Realtors said