Bengaluru Real Estate: Is It Time to Book Profits and Exit Amid Signs of Slowdown?
With the tech sector facing layoffs and growing uncertainty, Bengaluru's real estate market is experiencing a slowdown. Investors and homebuyers are now questioning whether it's the right time to sell and exit the market.
Real EstateBengaluruTech LayoffsProperty PricesMarket SlowdownReal Estate NewsJun 11, 2025
With artificial intelligence (AI) impacting tech jobs, the backbone of Bengaluru’s economy, netizens note a gradual slowdown in homebuyer interest, leading to softer demand. The buyer profile has evolved over the years. Previously, people waited until they had 10 years of work experience to buy a home. This period shortened to six years, and last year, some 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 this trend is now slowing down.
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 are also increasingly wary. Several are reconsidering lease renewals for tech employees, with some preferring not to extend agreements beyond the usual 11-month term amid growing uncertainty.
Priyanka Kapoor, senior vice president, Research at ANAROCK Group, notes, “With job uncertainty looming, homebuyers are taking longer to make decisions. The overall decision-making cycle has stretched, showing increased caution.”
In such a scenario, real estate experts advise 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 observe that the salaried class is becoming wary of investing in real estate. A Reddit post reads, “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 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.”
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 AI on tech jobs, which form the backbone of Bengaluru’s economy. As more companies adopt AI solutions, roles 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. 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.
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, such as 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.
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 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.”
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.
Frequently Asked Questions
What is causing the slowdown in Bengaluru's real estate market?
The slowdown is primarily due to the recent wave of tech sector layoffs and the impact of artificial intelligence on tech jobs, leading to reduced buyer sentiment and market confidence.
How are landlords reacting to the slowdown?
Landlords are increasingly wary and are reconsidering lease renewals for tech employees, with some preferring not to extend agreements beyond the usual 11-month term amid growing uncertainty.
What advice do real estate experts give to investors?
Experts advise investors to wait rather than exit now, as real estate prices are unlikely to fall and may remain stagnant before appreciating again. However, this depends on the location and the specific property.
What are the long-term concerns for Bengaluru's real estate market?
Long-term concerns include high living costs, water scarcity, shrinking green cover, extreme weather events, and crumbling infrastructure, which may affect the attractiveness of the market to genuine homebuyers.
How has the buyer profile in Bengaluru's real estate market evolved?
The buyer profile has evolved from people waiting 10 years of work experience to buy a home to those with six years of experience, and even last year, some buyers with modest salaries were looking at ₹1.25 crore homes, often funded by selling family property or with parental support.
Related News Articles
India's Luxury Housing Boom: High-End Sales Skyrocket to 41% in H1 2024
India's luxury housing market is on fire, with high-end sales surging to 41% of total sales in H1 2024, driven by robust economic growth and increasing demand for luxury lifestyles.
Revitalizing Democracies through Innovative Journalism
Discover the future of journalism and its role in building healthier democracies. Learn how innovative strategies can help unlock new revenue streams and boost economic growth.
Maharashtra Sets Ambitious Target of 70+ Solar Villages in Two Months
Maharashtra aims to create over 70 solar villages in the next two months, a move that is expected to boost the state's renewable energy sector.
Mumbai Property Registrations See a 5% Increase in November 2024
Property registrations in the Mumbai municipal region saw a 5% increase in November 2024, with over 10,200 units registered, reflecting a gradual recovery in the real estate market.
Ahmedabad Real Estate Market Surges: 16% Rise in Housing Prices
Ahmedabad's real estate market has witnessed a significant 16% year-on-year increase in average housing prices, surpassing Kolkata and closing in on Chennai. The city's housing price now stands at Rs 7,640 per square foot.
Tata Investment Corp Acquires Prime Office Space in Mumbai's Wadala for ₹148 Crore
The agreements were registered on January 10, 2025, marking a significant deal in Mumbai’s real estate sector, according to documents accessed by CRE Matrix - A Real Estate Data Analytics Firm.