Bengaluru Homeownership Challenges for IT Professionals

Bengaluru’s homeownership aspirations are dimming for numerous IT professionals. Amid layoffs, diminishing job security, and the increasing influence of Artificial Intelligence on office roles, many tech workers are reconsidering their options to purchase homes, even with real estate prices stabilising.

What was previously regarded as a significant life achievement—owning a home in India’s tech hub—is now perceived by many as a financial burden. Discussions on platforms like Reddit and within the tech community have evolved. The focus has shifted from when to buy to questioning the necessity of buying at all.

Changing Sentiments on Home Loans

The mood is evident. A ₹1 crore home loan results in a ₹1.3 lakh monthly EMI, leading buyers to believe that this commitment is only justifiable in a secure job realm. One Reddit user articulated the concern, stating that if one loses their job, managing ₹1.3 lakh becomes exceptionally challenging.

The Impact of AI on Career Stability

The apprehension is aggravated by the swift adoption of AI technologies. Professions once deemed secure, such as designers, analysts, and even sales personnel, are now at risk. A user humorously remarked that even the unsolicited calls from real estate agents are now initiated by AI bots.

A Preference for Flexibility

Many individuals now seek greater flexibility. Instead of committing to a 15-year mortgage, younger professionals prefer renting and allocating their funds in other ventures. A senior engineer with more than a decade of experience remarked that unless they can afford to pay upfront, the anxiety simply isn’t worth it.

Market Dynamics and Changing Buyer Profiles

While some developers continue to pursue high-net-worth individuals and seasoned tech workers who accumulated wealth during the boom years, entry-level and mid-career professionals are retreating. Simply lowering prices may not suffice. As one user pointed out, even a 40 percent price drop would not entice tech workers to enter the market without assurance of trust and future value.

Developer Perspectives on Real Estate Trends

Despite the changing landscape, developers remain optimistic. Sunil Pareek, executive director at Assetz, stated that Bengaluru’s post-COVID property surge was a necessary correction following years of flat growth. He perceives no impending price collapse, forecasting an annual price growth of 5 to 7 percent instead of stagnation.

Shifts in Buyer Enquiries

Still, the statistics reveal a transformation. In prominent tech areas like Whitefield and Sarjapur, enquiries have decreased by up to 25 percent in recent months. With a limited number of large-scale developers and inventory holding steady at around 12 to 14 months, supply is tight, but buyer confidence remains equally constrained.