Bengaluru real estate: Is it the best time to ‘book profits’ and exit as signs of slowdown emerge? Netizens weigh in

As AI disrupts tech jobs, Bengaluru netizens are noticing a dip in homebuyer demand. Many are questioning if it’s the right time to exit the real estate market

Bengaluru’s real estate market has delivered strong returns in recent years, with investors reaping significant gains. But with emerging signs of a slowdown, many are now wondering if it’s time to book profits and exit.

Bengaluru’s real estate market has delivered strong returns in recent years, with investors seeing significant gains in property values. However, amid signs of a slowdown, many are now questioning whether it’s time to ‘book profits’ and exit. (Representational Image) (Unsplash )

With artificial intelligence impacting tech jobs, the backbone of Bengaluru’s economy, netizens note a gradual slowdown in homebuyer interest, leading to softer demand. The buyer profile too has evolved. Netizens say that people earlier waited until they had 10 years of work experience to buy a home. That came down to six years. Last year, a few buyers with modest salaries were looking at ₹1.25 crore homes often funded by selling family property in their hometowns or with parental support. But even that trend is slowing now.

Real estate brokers say the recent wave of tech sector layoffs has dented buyer sentiment and market confidence. It’s not just homebuyers and tenants, landlords, too, are increasingly wary. Several are now reconsidering lease renewals for tenants working in tech, with some preferring not to extend agreements beyond the usual 11-month term amid growing uncertainty.

"With job uncertainty looming, homebuyers are taking longer to make decisions. The overall decision-making cycle has stretched, showing increased caution,” said Priyanka Kapoor, senior vice president, Research, ANAROCK Group.

In such a scenario, real estate experts point out that it may be a good idea to wait rather than exit now. “Real estate prices are unlikely to fall—they may remain stagnant for a while before appreciating again. For investors seeking long-term gains, it's important to wait for the right time to sell. However, this also depends on the location. If the property is in an area with high demand and limited supply, selling the asset can be a smarter move.”

Netizens say the salaried class is wary of investing in real estate

"The property prices haven't appreciated by the same level between 2024-25 as they did between 2022-2023, at least not organically. Buyers, especially the salaried class, are increasingly becoming aware of these impending factors and are quite wary about making any new investment. I'm worried if it would become difficult to find buyers later," a Reddit post read.

Over the past few years, property prices, especially in areas around the Outer Ring Road (ORR), Sarjapur Road, and Whitefield, have surged, driven by tech-sector demand and post-pandemic investments. However, there is growing concern that this momentum may not last.

One of the key worries is the impact of artificial intelligence (AI) on tech jobs, which form the backbone of Bengaluru’s economy. As more companies adopt AI solutions, there is speculation that roles, particularly among software engineers and tech managers, may begin to shrink.

Adding to this is the significant slowdown in fresher hiring. Many firms have paused recruitment, and salary growth has plateaued. As per reports, startup funding, once a major driver of home purchases among young professionals, has also declined. Data from market research firm Tracxn Technologies showed that Karnataka startups raised $633 million in the first quarter of 2025, down 23% from the $825.5 million raised in the last quarter of 2024.

Is property price growth slowing down?

Netizens note that property prices between 2024 and 2025 haven’t grown at the same pace as in the immediate post-COVID period (2022–2023), and much of the growth doesn’t appear to be driven by end-user demand. There is also rising awareness of long-term concerns, high living costs, water scarcity, shrinking green cover, extreme weather events, and crumbling infrastructure.

Meanwhile, planned infrastructure projects like tunnel roads may add to congestion before easing it. Some users worry that as prices remain high, demand from genuine homebuyers, especially among salaried employees, could taper off.

'Impact may not be visible immediately'

One Redditor, who has been involved in onboarding and training freshers for several years, said the impact may not be immediately visible, but the trend is becoming clearer.

“People used to buy flats after 10 years of work experience. Over time, that came down to 6 years. Last year, I saw people with modest salaries trying to buy flats worth ₹1.25 crore. Often, they were selling property in their hometowns or getting help from their parents. But we haven’t hired anyone this year, at least not directly. If this continues and real estate keeps producing apartments at the same pace, there won’t be buyers left in this segment in the next 2 to 3 years,” the person wrote.

Another Reddit user highlighted growing caution among Bengaluru’s potential homebuyers, linking local market uncertainty to global economic shifts. They noted that a few companies are cutting back on spending and offshoring, especially due to rising global protectionist policies.