Bengaluru real estate: Tech professionals weigh homeownership amid Artificial Intelligence disruption and layoff fears
Amid rising fears of job layoffs driven by AI, tech professionals in Bengaluru are rethinking their financial choices, particularly when it comes to home loans
As job security concerns in the age of Artificial Intelligence continue to rise, many tech professionals in Bengaluru are reconsidering long-term financial commitments, such as home loans. A Reddit post by a techie captures this growing dilemma—balancing the stability of homeownership with the flexibility of renting amid fears of AI-driven job losses.
With automation transforming industries, several IT companies are witnessing layoffs and a slowdown in hiring. Netizens point out that this employment uncertainty is making investors more cautious, as a weaker job market could dampen housing demand and potentially drive down property prices.
"I am at age 30, and a developer in Bengaluru. There is always a risk involved if I take a home loan for 25 years, even though considering foreclosure in 10-12 years. There is a constant threat of AI, there is no guarantee that if the job will remain there or not. Fear of AI will be there even if I live on rent, but at least I will have the option to move hometown and start something with no strings attached to Bengaluru city," a Redditor wrote.
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'Prime areas out of reach for young working professionals'
Even within Tier-1 cities, complaints about affordability often centre around the top 10–25% of localities, which are naturally out of reach for most people.
While it's understandable that these areas are attractive due to factors like proximity to workplaces, safety, and superior social infrastructure, it’s important to acknowledge that prime localities in major cities inevitably come with a high price tag, a Redditor wrote.
These localities are often out of reach for young working professionals, the post said.
A Reddit user pointed out that people are naturally drawn to prime neighbourhoods for valid reasons, including proximity to workplaces, enhanced safety, and superior social infrastructure.
However, they emphasised that these benefits come at a premium, and it’s crucial for both buyers and renters to recognise that higher prices are an inevitable trade-off for living in the most sought-after areas of a major city.
"In India, people can't accept that on a low salary, their first home would have to be a little far from the city centre. I realise, commuting is harder, but often we have good metro networks (in most cities), and people have their prejudices and don't move," the Redditor wrote.
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Real estate, like gold, is a finite resource—its value naturally increases
A Reddit user compared real estate to gold, noting that both are finite resources with a limited supply that cannot be artificially increased.
Due to this scarcity, real estate values tend to appreciate over time, much like gold. The user argued that as cities expand and populations grow, land and property, particularly in urban and high-demand areas, become increasingly scarce, driving prices upward.
In their view, this makes real estate more than just a place to live or work; it’s also a long-term asset that generally holds or increases in value, similar to gold.
