Bengaluru buyers fueling soaring property prices, driven more by hype than value

Bengaluru buyers push up property prices, driven by hype than value. Netizens warn peak-rate buys make resale tough, as owners must price higher to break even

Bengaluru’s real estate market has witnessed a sharp rise in property prices and rents over the last 2–3 years. While supply and demand are contributing factors, many buyers believe the real catalyst is the IT community itself, willingly paying inflated rates and unknowingly pushing up market benchmarks. Many don’t realise that those who buy at peak prices often struggle to resell, as they’re forced to quote even higher prices just to break even on their investment.

Bengaluru: Many buyers believe the real catalyst is the IT community itself, willingly paying inflated rates and unknowingly pushing up market benchmarks. (Representational Image) (Unsplash )

“There’s no logic in pricing anymore,” a user wrote on the social media platform Reddit. “People are paying ₹1.5 crore for a 900 sq. ft. 2BHK, and once that happens, it becomes the new benchmark. Everyone else follows, and the price keeps going up.” The same pattern applies to rentals, where tenants agreeing to ₹50,000 per month have led to a ripple effect across neighbourhoods, the user said.

'IT professionals falling into the FOMO trap'

Several Redditors said that tech professionals are among the most vulnerable to the homebuying hype.

“I’ve seen very smart engineers being manipulated by uneducated brokers. The fear of missing out (FOMO) is unreal,” said one user. “It breaks my heart because these are the people who built the city, yet they’re the ones getting the worst deal.”

Another Redditor shared an example of a senior IT employee paying over ₹1 lakh in monthly EMIs for a 3BHK, hoping the property's value would rise linearly. But in reality, the apartment was already overpriced and difficult to sell.

Smaller properties, smarter investments?

One user suggested that buyers could consider picking up two or three smaller properties that generate steady rental income instead of stretching finances for one large apartment. “I’ve been buying small units in Gurugram, earning monthly rent and flipping them every 6–12 months for modest profits. It’s helped me stay afloat financially, especially since I care for a special child,” they shared.

Buyers urge caution against buying hype

Many buyers focus on notional profits and forget to factor in taxes, inflation, and hidden costs. Several users argued that putting the same investment into mutual funds or other instruments could deliver similar or better returns, with far less stress and higher liquidity. In a market where hype often overtakes logic, more homebuyers are questioning whether real estate in cities like Bengaluru is worth the price.

Inflated home prices quickly become 'market rate'

A Redditor pointed out that once a single buyer overpays, that inflated rate quickly becomes the new “market price,” regardless of whether it's justified. "Builders often exploit this momentum to boost prices on their remaining inventory. Homeowners who buy at these inflated rates later find it hard to resell unless they price even higher, often to recover their initial investment and loan costs."

With EMIs mounting and resale becoming difficult, Redditors say many owners rent out their units, effectively locking their money in the property for years. The user also noted that if buyers calculated actual returns, including taxes, maintenance, and inflation, they’d see that investments like mutual funds or Real Estate Investment Trusts (REITs) can offer better yields, more liquidity, and less stress.