Bengaluru real estate: Layoff fears and AI disruption push IT professionals to rethink EMIs, with experts advising caution and maintaining savings buffers

Amid mounting fears of layoffs and AI-led disruption in the technology sector, many Bengaluru homebuyers, largely IT professionals, are reconsidering one of their biggest financial commitments: long-term home loan EMIs. With job security no longer assured, high monthly repayments can quickly turn into a strain if income suddenly stops. “The monthly EMI becomes a nightmare when the salary disappears,” one user noted online.At the same time, some argue that buying still makes financial sense if the EMI is comparable to or lower than rent, since loan repayments remain relatively fixed while rents typically rise each year. Even so, a growing number of tech professionals appear cautious about locking themselves into EMIs that could outlast the stability of their current roles.

Earlier, the story of a laid-off techie in Bengaluru sparked a debate on X about the risks of buying high-priced apartments and taking on long-term home loan commitments. The professional had bought a ₹1.3 crore flat two years ago, paying ₹50 lakh upfront and agreeing to a monthly EMI of ₹78,000.

After he recently lost his job, his cousin shared details of his financial stress on X, advising him to consider selling the apartment and reassessing his plans. Citing global economic uncertainty, she told Hindustan Times Real Estate that individuals dependent on a single source of income should wait before committing to large home loans.

While homeownership is often seen as a source of stability, users noted that high EMIs can quickly become a burden when income dries up. “The monthly EMI becomes a nightmare when the salary disappears,” one user wrote. Others, however, argued that buying property can still make financial sense if EMIs are lower than rent.”

“Five years back, I started learning new tech, and 3 years back, I switched jobs with a 3x time hike. And I have one loan ongoing, the loan is also the reason i am keeping focusing on my work. So I can pay my emis and save enough money. But before the loan and no responsibilities i was sitting in the same company for 5 years without any worries. But yes, one should not spend on unnecessary things like branded clothes, expensive products, expensive restaurant and so on,” one of the Redditors posted on the social media platform.

In several reported cases, buyers noted that a ₹1 crore apartment typically comes with EMIs exceeding ₹1 lakh a month, manageable during stable employment but daunting if a job loss coincides with a weak hiring cycle. This anxiety has grown amid reports of layoffs, hiring freezes, and the growing impact of AI on traditional software roles, several Reddit users say.

“That said, new launches continue to remain strong, and there is no significant slowdown being seen presently in demand. The overall decision-making cycle for homebuyers has increased. They are taking their time to make a final decision. This shows that they are somewhat cautious,” Priyanka Kapoor, Senior Vice President, Research, ANAROCK Group said.

He pointed out that while such numbers may look workable on spreadsheets, day-to-day realities often tell a different story. To manage the pressure, Sadagopan said buyers would need to maintain strict financial discipline, avoiding fresh loans, postponing discretionary spending and limiting large purchases. He added that keeping the monthly home loan EMI well below ₹1 lakh would significantly ease financial stress and improve long-term sustainability.

Sadagopan said households should set aside a minimum of 10–15% of income, in addition to maintaining an adequate emergency fund. “The more prudent approach would be to first build a stronger down payment through savings and then revisit the decision to buy, rather than locking into a high-value purchase too early,” he said.

“Ideally, purchasing a home becomes far more manageable for dual-income or high-income households that have already built a sizable financial cushion. In such cases, buyers are often able to put down a substantial down payment of 40–50% of the property value, significantly reducing the loan requirement and, in turn, the monthly EMI burden,” he said.

Experts say household budgets work best when expenses are aligned with earning capacity rather than split evenly between partners. In families where incomes vary widely, allocating costs in proportion to individual earnings can ease pressure on monthly cash flows and reduce financial stress.

Sadagopan explained that in a household earning a combined ₹3 lakh a month, where one partner earns ₹1 lakh and the other ₹2 lakh, the higher earner is better positioned to shoulder a larger share of expenses. Such an approach, he said, helps maintain liquidity, avoids strain on the lower earner, and supports long-term financial stability.