The Bengaluru real estate market, long fueled by the IT sector, is showing signs of strain. A Reddit user recently sparked a debate, pointing to layoffs, stagnant hiring, and a ‘silent recession’ as reasons for dwindling demand.
"For years, IT professionals drove the city's housing boom, but that engine is slowing down," the user noted. While politicians and startup founders still invest in property, their numbers, the user wrote, pale in comparison to the flood of tech employees who once fueled the market.
Bengaluru’s real estate growth has largely mirrored the fortunes of its tech sector. However, a slowdown in hiring and rising job insecurity are making buyers hesitant.
Fewer entry-level jobs mean fewer new homebuyers, and senior employees—many of whom already own property—aren’t actively purchasing, the user claimed.
The AI boom, which some hoped would drive demand, isn’t creating jobs at the same scale as cloud computing once did.
Most AI-related work in India revolves around building tools around existing models developed elsewhere, limiting local employment opportunities, the user wrote, adding that fewer IT professionals are being sent abroad, leading to a decline in NRI investment in the city’s housing market.
The impact of hiring freezes and job cuts is clear. "Layoffs, no hikes—people are playing it safe. Some might even default on home loans."
A separate discussion highlighted how tax laws add another layer of complexity for professionals. "The tax codes are obtuse enough to stump even experienced professionals," one user noted, pointing to a system that feels deliberately confusing.
Beyond the IT downturn, concerns about infrastructure and sustainability are growing. "Water has dried up, the weather isn’t the same anymore. Those paying exorbitant prices now will be bag holders a decade from now," another user remarked, adding that poor crop quality and congested roads make buying in the city less appealing.
Bengaluru remains cheaper than Mumbai by 16-20%, but property values vary significantly. Premium areas like Koramangala and Indiranagar command prices as high as ₹44,444 per square foot, while affordable areas like Whitefield and Electronic City start at ₹6,000-₹8,000 per square foot. While metro expansion and road improvements continue to boost select pockets, the broader market is in a precarious spot. With uncertainty around IT hiring and infrastructure struggles mounting, Bengaluru’s real estate boom may be facing its toughest test yet.