Mounting fears of layoffs and artificial intelligence-led disruption in the technology sector are prompting many Bengaluru homebuyers largely IT professionals to rethink long-term home loan commitments.
For years, the city’s residential market has thrived on stable tech incomes and predictable salary growth. However, as hiring slows and job security becomes less certain, high monthly EMIs are emerging as a key concern. “The monthly EMI becomes a nightmare when the salary disappears,” one user wrote online, reflecting a growing sentiment among salaried professionals. The debate intensified after the case of a laid-off tech employee surfaced on social media. The professional had purchased a Rs 1.3 crore apartment two years ago, paying Rs 50 lakh upfront and committing to a monthly EMI of Rs 78,000. Following job loss, the financial strain sparked renewed discussions around whether buying high-value property with large loan obligations is prudent in an uncertain employment climate. While some argue that purchasing a home remains financially viable particularly when EMIs are comparable to or lower than rent others caution that long-tenure loans can quickly become burdensome if income stops. A Rs 1 crore property in Bengaluru can often translate into EMIs exceeding Rs 1 lakh per month, manageable during steady employment but risky amid layoffs or hiring freezes. Real estate consultants note that demand has not collapsed, but buyer behaviour is shifting. “New launches continue to remain strong, and there is no significant slowdown being seen presently in demand. However, the overall decision-making cycle has increased. Buyers are taking more time before making a final decision, which shows caution,” said Priyanka Kapoor, Senior Vice President Research at ANAROCK Group.
Financial planners warn that high EMIs can strain household cash flows even when incomes are stable. Suresh Sadagopan, a financial expert, said that once routine expenses and EMIs approach Rs 80,000 or more, households are left with limited room for emergencies or unexpected costs. He advised keeping EMIs well below Rs 1 lakh where possible and building a stronger down payment before committing to a purchase. Experts recommend maintaining an emergency fund and setting aside 10-15% of income regularly. Dual-income households or high-income earners with 40-50% down payments are better positioned to absorb financial shocks, reducing dependence on large loans. In families with uneven incomes, allocating expenses proportionally rather than equally can also help manage stress. For instance, in a household earning Rs 3 lakh monthly, where one partner earns Rs 2 lakh and the other Rs 1 lakh, the higher earner may need to shoulder a larger share of fixed obligations to preserve liquidity.
As AI reshapes global tech hiring patterns, Bengaluru’s housing market appears to be entering a more cautious phase. While homeownership remains a long-term aspiration for many, financial resilience and job stability are increasingly becoming central to the rent-versus-buy decision.
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Bengaluru Techies Rethink Home Loans Amid AI Fears
