Bengaluru’s high real estate costs now face a big challenge from its IT workers’ job stability. Tech hiring has slowed down, and this could upset the housing market plus the whole economy, including building work and shops. People on Reddit talk about the risks. They say home prices only doubled in the past when IT pay jumped. That took place in the 2000s and near 2021.
Bengaluru’s fast-rising property market hits a snag with weaker IT jobs. Past patterns show prices doubled just as tech wages did, raising worries. (Photo for illustration) (Unsplash)
Bengaluru’s fast-rising property market hits a snag with weaker IT jobs. Past patterns show prices doubled just as tech wages did, raising worries. (Photo for illustration) (Unsplash)
Experts guess that each lost IT job affects 10 more people in other fields. Building, shops, schools, food spots, and even taxi drivers will suffer too. The city leans hard on tech, so its housing surge depends on that sector’s strength, say online users.
Reddit users note that Bengaluru’s home price ups and downs have tracked IT pay trends. “Home prices double only when IT pay doubles. It hit in the 2000s and again by 2021,” one poster said. They linked the city’s property booms to big outsourcing waves during Y2K and the pandemic’s online rush.
New US rules like the HIRE Act to stop job shifts abroad, plus AI growth, might cut outsourcing. This could flip the pattern. “Step into any big gated area in Bengaluru now, and 30% of the older men there lack work. Many earned from 90 lakh to 2 crore rupees a year,” a user shared in a hot thread.
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Effects spread past homes Leaders warn the damage would reach further than condos and big houses. “Fewer IT jobs will slam real estate hard. But builders, designers, cement firms, steel makers, schools, eateries, and cab drivers will hurt too,” a local real estate expert said. “Each IT job gone impacts 10 others’ earnings.”
Some point out bigger economic hits. Without outsourcing cash, India’s dollar flow drops, the rupee weakens, and import prices climb, like for oil. “Building costs will rise with price hikes. Firms might drop big plans, and homes could seem cheap in dollars but cost more in rupees,” an investor added.
Also Read: From basic flats to high-end leases: Bengaluru’s small 1BHKs now rent for over 1 lakh rupees monthly.
Online views split on Bengaluru’s property future with IT doubts Not all see gloom. Some say IT workers have solid savings, from US shares to spread-out investments. “Many new hires from big firms two or three years ago turned into millionaires. Laid-off tech folks are sharp; they won’t sit still,” one forum user replied.