Bengaluru’s Real Estate Dilemma | Invest Now or Wait?

Bengaluru, India's IT capital, has long been a hub for real estate investments, but a new debate is taking social media by storm—should buyers invest now, or is it wiser to wait? The driving force behind this uncertainty? Artificial Intelligence (AI) and its impact on the IT sector, a key player in the city’s housing demand.

The Fear of a Market Correction

Amidst widespread layoffs and hiring slowdowns, many investors are hesitant. AI-driven automation is reshaping industries, and IT professionals—once the backbone of Bengaluru’s real estate—are now facing job insecurity. As one Redditor put it:

“With layoffs happening, property prices might dip soon. If you’re planning to buy, waiting six months could save you from overpaying.”

Real estate analysts echo similar concerns. Reports indicate that Bengaluru’s market is currently overpriced, and a price correction could be on the horizon. If this happens, buyers rushing in today may find themselves paying a premium for properties that depreciate in the near future.

Housing Affordability in Bengaluru: A Growing Concern

According to a report by ANAROCK, capital values in Thanisandra Main Road surged by 67% from ₹5,345 per sq. ft. in 2021 to ₹8,900 per sq. ft. in 2024. Rental values also spiked 62% during this period. In Sarjapur Road, rental values climbed even higher—76%—while property prices grew 63%.

However, the affordability of homes remains a pressing issue. A NoBroker report highlights that mid-range housing project launches (priced between ₹40 lakh and ₹80 lakh) in Bengaluru declined by 29% in 2024. This signals a shrinking market for budget-conscious buyers.

A social media user summed it up well:

“Buying an apartment at current rates is nearly impossible for an average-earning individual. High-income couples in IT still buy, but for many, the market is out of reach.”

AI’s Impact: A Shift Similar to the Telecom Boom

Tech professionals on platforms like LinkedIn and Twitter compare AI's disruption to past technological shifts, such as the automation of telephone lines. Once, human operators manually connected calls—today, it’s fully automated.

A Reddit user observed:

“AI is here to stay. Every company is reducing headcount. The number of employees needed will only shrink over time.”

As AI advances, the uncertainty surrounding IT jobs is bound to impact housing demand in Bengaluru.

Rental Market: Signs of a Correction?

Unlike the tight rental market of 2022-2023, Bengaluru’s rental sector is seeing a shift. More properties are available, giving tenants greater flexibility. Real estate experts report a 5-10% drop in rental prices in areas like Electronic City, Banashankhari, and JP Nagar.

Riyaz Ahmad, owner of Access Realtors, stated:

“We are already seeing landlords lowering rents by ₹2,000-₹5,000 per month in several areas.”

So, Should You Invest Now or Wait?

With AI-driven job losses and a potential market correction on the horizon, many experts advise waiting at least six months before making a purchase. For those considering an investment, closely tracking price trends and employment stability will be key in making a well-timed decision.