'Is Bengaluru's real estate market slowing down?' IT layoffs, affordability issues concern homebuyers

Bengaluru real estate: Homebuyers are wary of IT layoffs and high prices; experts say demand remains strong and market slowdown may be temporary

Bengaluru homebuyers are concerned about whether the city’s real estate market is headed for a slowdown. Fears of IT sector layoffs, stretched affordability, and high home prices have sparked debate among prospective buyers in the city. At the same time, Redditors remain divided, with some flagging potential risks while others point to ongoing demand and sales activity as signs of underlying stability. This comes at a time when Oracle Corporation has announced plans to lay off 30,000 employees globally, nearly 19% of its workforce, affecting about 12,000-15,000 employees in India, according to reports.

Bengaluru homebuyers anticipate a slowdown amid IT layoffs, stretched affordability, and high property prices. (Picture for representational purposes) (ChatGPT)

Real estate experts point out that Oracle’s layoffs could temporarily dampen demand for rental and mid-segment properties. Employees exiting IT companies might delay home purchases or downsize rentals.

One Redditor warned that “cities like Bengaluru, which have been built around IT, could see property values collapse if layoffs continue,” advising cautious buyers to rethink multi-crore investments with long EMIs. He suggested that a safer strategy might be to buy land near emerging hubs or villages, or focus on upcoming cities like GIFT City in Gujarat or Amaravati in Andhra Pradesh for long-term returns.

'Prices were always infalted'

Some Redditors noted that Bengaluru’s historically high prices were partly driven by limited public transport and infrastructure, rather than by space constraints. “Bengaluru is more like London, which can expand in all directions but needs better connectivity,” one of the users noted.

"Bengaluru was always inflated because the prices were driven by a lack of public transport. It's not like Mumbai, where there is literally no space to expand. Bengaluru is more like London, which can expand in all 4 directions, but needs good public transport," the Redditor said.

However, several Redditors pointed out that real estate transactions continue, with buyers still acquiring properties from top builders. A Reddit user said, “Look at the quarterly updates on the RERA website for top builders near the airport. There are very few units left. People are buying quietly; the market is far from collapsing.”

Job market uncertainties

Several Redditors argued that while AI and layoffs are reshaping the IT sector, the tech capital still remains a strong employment hub. “Most migration to the city happened because of IT jobs, but Bengaluru has so much more to offer that people aren’t going anywhere. The city will adapt to AI changes in the job market,” one user said.

Others pointed out that markets go through time corrections; they do not crash overnight. “Builders would rather hold unsold inventory than sell at a loss. Eventually, the city will continue to expand, and South India’s major cities, Bengaluru, Hyderabad, and Chennai, will remain attractive.”

Some users also noted that AI may reduce routine tasks but increase demand for skilled oversight. “Layoffs are happening, yes, but headcount additions continue. AI is eliminating entry-level and managerial tasks, but human expertise is still required to maintain and manage these systems,” one user explained.

Despite concerns, Redditors noted that Bengaluru’s property prices remain competitive compared with those of other Indian cities. "Compared to Gurgaon, Noida, Hyderabad, or Mumbai, Bengaluru real estate is not that expensive. Rental yields are still 4–5%, which is very good,” one commenter noted.

How does Bengaluru react to layoffs?

While concerns about tech layoffs and job market uncertainty continue to concern buyers, some experts suggest Bengaluru’s housing market may only experience a temporary slowdown.

“This isn’t the first time the city has gone through such cycles,” said Manjesh Rao, founder of Bengaluru-based real estate consultancy Bluebroker. “We’ve seen similar slowdowns before, whether triggered by global economic shifts, hiring freezes, or layoffs in the tech sector. Homebuying sentiment dips briefly, but the market generally stabilises once confidence returns.”

Rao emphasised that Bengaluru’s real estate fundamentals remain strong, underpinned by long-term demand from young professionals and families. “During uncertain periods, buyers may postpone purchases, but they don’t exit the market entirely. The underlying demand keeps the market resilient,” he said.

(Disclaimer: This report is based on user-generated content from social media. HT.com has not independently verified the claims and does not endorse them.)