BENGALURU: While artificial intelligence is reshaping the tech landscape, the residential real estate market in Bengaluru continues to thrive, fueled by the expanding GCC ecosystem, a skilled workforce, and evolving expectations of homebuyers, as stated by industry leaders.
At the RealtyDailyNews Realty & Beyond Summit Bengaluru held on Tuesday, real estate professionals highlighted Bengaluru’s shift from an IT-centric market to a diverse technology and innovation economy, leading to new residential demand patterns. They asserted that although AI might impact job roles, it is unlikely to hinder the city’s long-term housing needs.
The panel featured notable figures including Mallanna Sasalu (CEO-South, Puravankara), Jagadish Nangineni (Managing Director, Sobha), Pavan Kumar (Founder & CEO, White Lotus Group), Sunil Pareek (Executive Director & CIO, Assetz Group), Nischay Jayeshankar (Deputy Managing Director, Adarsh Group), and Madhusudhan G (Chairman & Managing Director, Sumadhura Group), with moderation by Prashant Thakur (Executive Director & Head – Research & Advisory, Anarock Group).
In response to worries about AI-induced job losses, Sunil Pareek remarked that Bengaluru is experiencing a transition, not a downturn. “Premiumisation is here to stay,” he stated, explaining that while entry-level tech jobs might face short-term challenges, the demand for experienced professionals and AI specialists is giving rise to a new class of affluent homebuyers seeking premium housing options.
Pareek emphasized that Bengaluru remains a leader in office leasing across India, with GCCs contributing significantly to recent absorption despite certain workforce reductions in the IT sector. “We shouldn’t label Bengaluru an IT city anymore; it is evolving into a mature tech economy,” he added, stressing the need for developers to adopt data-driven strategies as buyer profiles diversify.
Madhusudhan G echoed this optimistic perspective, suggesting that AI is more likely to redefine jobs rather than eliminate them. “AI is replacing lower-income BPO roles with higher-paying GCC positions,” he mentioned, highlighting Bengaluru’s aptitude for talent attraction and adaptability as key assets for future growth. “If the last decade belonged to Bengaluru, the next one will be its era,” he asserted.
The panel also noted significant shifts in homebuyer preferences, with an increasing focus on larger homes, lifestyle amenities, gated communities, and integrated developments, moving beyond mere affordability.
However, developers recognized that rising land costs, construction expenses, and regulatory hurdles are complicating the delivery of affordable housing in urban centers. They cautioned that private developers alone cannot tackle the affordability gap without supportive policies from the government.
Industry leaders stressed the significance of infrastructure improvements in fostering the next phase of Bengaluru’s growth. Enhanced metro connectivity, suburban rail initiatives, and new transit corridors are anticipated to open up new residential areas and alleviate pressure on established markets.
Jagadish Nangineni, Managing Director of Sobha, stated that Bengaluru’s growth is closely linked to India’s broader economic trajectory and its ongoing capacity for reinvention. “Cities thrive through adaptation, and Bengaluru has shown remarkable resilience in this regard,” he said, emphasizing that the city’s talent density is its greatest competitive asset.
Looking to the future, developers concurred that while affordability challenges and shifting job landscapes may pose new obstacles, Bengaluru’s foundational strengths remain solid. The combination of economic expansion, infrastructure development, GCC growth, and talent influx is projected to sustain demand in both premium and mid-income housing sectors in the upcoming years.
The consensus among developers is clear: Bengaluru’s housing market is no longer defined solely by affordability. Increasingly, it is shaped by aspirations, lifestyle choices, and the city’s evolution into a global tech hub, marking a new chapter in residential demand.
