Bengaluru Real Estate at Risk as IT Job Crisis Extends: Redditors Debate

Bengaluru's property market, which was once driven by the thriving IT industry, is reportedly exhibiting signs of difficulty. A user on Reddit recently ignited a discussion, highlighting layoffs and stagnant job growth as significant issues. The conversation revolved around whether it is a prudent time for IT professionals to invest in real estate or if they ought to reevaluate their financial priorities in light of economic uncertainties.

While some Reddit users voiced concerns regarding job stability and mortgage commitments, others posited that postponing a purchase could result in even higher property prices in the future, rendering homeownership less attainable. On the flip side, delaying a home acquisition could lead to encountering even steeper prices down the line.

For example, a property that was valued at Rs. 1 crore a year prior is now listed at Rs. 1.8 crore. The more one waits, the more expensive it could become, potentially pushing prospective buyers further away from the city as property values continue to escalate, another Reddit user commented.

During Bengaluru's technology-led expansion, software engineers and IT professionals were significant players in the real estate market, leveraging high salaries, stock options, and stable job prospects to purchase homes. Nevertheless, with the rise in reports of layoffs, hiring freezes, and an unstable global economy, many tech workers are reevaluating their financial goals. Amid the increasing layoffs and economic instability, numerous IT professionals are deferring their home purchases, resulting in a noticeable decline in demand compared to recent years, a Redditor observed.

A Reddit user in his 50s cautioned against hasty home buying, particularly in areas predominantly focused on work. He advised that prospective buyers should look beyond immediate convenience and consider neighborhoods that foster a balanced lifestyle, ensuring their investment remains viable for the long term.

“For IT professionals planning to buy a flat, what’s your fallback plan if you get laid off? With current EMIs being so high due to rising property prices, even a few months of unemployment could put you in serious financial trouble,” one Redditor wrote.

“For years, IT professionals drove Bengaluru’s housing boom, but that engine is slowing down,” another Reddit user pointed out.

"It may be convenient right now, but look beyond when your kids arrive," the Redditor cautioned, emphasizing the significance of long-term planning.

"Save as much as possible for a larger down payment and keep your EMI to a minimum. Many in their 20s and 30s are benefiting from high salaries driven by the zero-interest rate policy (ZIRP) era of hiring, but there’s no guarantee those earnings—or even their jobs—will be secure five years from now," the Redditor said.