New Parent in Bengaluru Debates Buying vs. Renting: Reddit Offers Insights

Becoming a parent is a life-changing experience filled with joy, but it also brings big decisions. One of the most significant? Deciding whether to buy a home or continue renting—especially in a dynamic real estate market like Bengaluru. This was exactly the dilemma faced by a 33-year-old Redditor, who recently sought advice from the online community on buying versus renting a home in Bengaluru.

Should They Buy or Rent? Bengaluru Redditors Weigh In

The Reddit post sparked a lively discussion. The original poster shared that they expect to stay in Bengaluru for the next 15-20 years for their child’s education and were considering buying an apartment in East Bengaluru for ₹90 lakh, with a ₹50 lakh down payment and the rest through a loan. On the flip side, they are currently paying ₹39,000 in rent and were unsure which route to take.

The online community jumped in with advice. Many users leaned towards buying, especially given the long-term commitment of staying in the city for 15-20 years. One of the most repeated pieces of advice was to focus on location, particularly proximity to schools and workplaces, as commuting can heavily impact quality of life.

“Owning a house far from your child’s school or your office can make daily life more stressful,” a Redditor pointed out.

To Make a Hefty Down Payment or Not?

One of the more debated topics was whether making a large ₹50 lakh down payment was wise. Some users cautioned against it, advising that the family keep aside enough for emergencies.

“I wouldn’t put ₹50 lakh as a down payment unless I had at least ₹12 lakh in emergency funds or other investments,” shared a user, highlighting the importance of liquidity.

Others advised the family to consider longer EMI tenures and putting down less upfront. This way, they could potentially earn returns on the saved amount through other investments and make the monthly payments more manageable.

Rent Now, Buy Later?

Several users also suggested a ‘wait and watch’ approach. Renting for a few more years while they save more for a larger down payment and wait for more clarity on their child’s schooling might offer them more financial stability.

“Rent until you can pay 70% down and use your provident fund to pay more upfront. You’ll also want to make sure you’re prepared for any job or life changes before taking on a mortgage,” one user suggested, pointing out that waiting could provide more flexibility.

Another added, “The real estate market has surged over the last few years, but it could stabilize soon. It might not be such a bad idea to wait, especially with improvements like the metro coming up.”

Bengaluru’s Booming Real Estate Market

Bengaluru’s real estate market has been growing rapidly, especially in the last year. According to a recent report by Square Yards, the second quarter of 2024 saw 28,356 property transactions, marking a 19% rise from the previous quarter. The total value of these transactions jumped 30%, reaching ₹19,631 crore.

Despite challenges like flooding and water shortages, demand for homes in Bengaluru has stayed strong, driven largely by the city's robust IT sector, and a mix of full-time and hybrid work models. Notably, Northern Bengaluru is quickly emerging as a key area for both apartments and plots, with branded developers launching new projects that are being quickly snapped up.

Prices on the Rise

The property market in Bengaluru is not just active—it’s getting expensive too. A report from Anarock shows that the city witnessed a 32% annual rise in average residential prices, from ₹5,900 per square foot in mid-2023 to ₹7,800 per square foot by the end of the first half of 2024.

Over the past five years, prices have surged by 57%, making it harder for buyers to find affordable homes. In fact, North Bengaluru now commands the highest average price per square foot in the city, and experts predict a further 10% rise by the end of 2024. Established tech corridors and prime locations are expected to see the steepest price increases.

Looking Ahead: What the Future Holds for Bengaluru Real Estate

According to data from Anarock, Bengaluru’s available residential inventory stood at about 45,420 units at the end of the first half of 2024—a 30% decrease compared to 2019. With inventory overhang dropping to a record low of 8 months, buyers may feel the pressure to act quickly as housing options become scarcer.

Even with these challenges, Bengaluru remains a top choice for homebuyers, especially as the city continues to evolve and grow.

For the Redditor and others in similar situations, the question remains: Is now the right time to buy, or is it better to rent and wait for the market to settle?

Bengaluru Real Estate Market Data:

Total Transactions in Q2 2024: 28,356 (+19% from the previous quarter)

Total Value of Transactions in Q2 2024: ₹19,631 crore (+30% from the previous quarter)

Average Price per Sq Ft: ₹7,800 (+32% year-on-year)