When Dario Amodei (CEO of Anthropic) brought the idea up to a world audience forum that within months, AI could do the work of most software engineers, there was a silent section of the internet that suddenly woke up, and now the Bengaluru property market is being deluged with a very 21st-century worry. The subsequent Reddit debate was not just about the techno-loving participants or technophobes, but more importantly, that a city’s skyline is only as solid as the pay cheques which purchase its apartments.
Several of the homes in Bengaluru are purchased with dollar-based incomes from non-resident Indians (NRI), overseas assignments or wages from technology companies that are linked to foreign salaries. Several of the Reddit participants cautioned that if overseas opportunities diminish and software engineers must reskill, then the demand for dollar-linked buyers will soften, resulting in a cyclical loss of this regular source of purchasing power and softening demand for specific areas of the property market. The contrary argument states that a reduction in dollar demand will, in fact, lead to more affordable housing for local Indian rupee-paid buyers.
The Reddit snapshot is an impressive display of the status of money today; it shows where most sales are currently occurring, with buyers buying in the ₹3–5 crore bracket. Using the live foreign exchange rate for mid-February 2026 (1 INR = $0.0110405) as an example, this represents prices of approximately $331,215–$552,025. It is anticipated that buyers will take an interest in the ₹1–2 crore range (or approximately $110,405–$220,810), while ultra-luxury segments may continue to exist but in smaller numbers (or ₹7 crore-plus; approximately $772,835). As these changes in purchasing preferences take place, there will also be a redefinition of what qualifies as “aspirational” housing out in the real estate marketplace.
However, market veterans would warn buyers that it may be too early to declare the end of Bengaluru’s growth period. According to Sunil Pareek at Assetz, while the growth in Bengaluru over the last couple of years has been dramatic, it is not due to an irrational speculative bubble; instead, it results from pent-up demand created by a prolonged period with no new developments prior to 2020, and this appreciation, driven by a high level of home purchases over the last 12 months, has led to an increase in market prices of approximately 60-70%. Thus, he does not expect that the market will see a decline in value but will transition into a period of gradual, moderate appreciation. In other words, we are not going to see a continuing descent of value; rather, we will see a slow and steady decrease in the energy and volatility associated with the real estate market at this time.
A K-shaped outcome for real estate is very likely, with strong pockets of growth and high appreciation in price for professionals who still earn high incomes or receive dollar-based salaries. Other groups will be affected by a slower K-shaped path, which will take time as they retrain or change careers.
Location, micro-market, job quality, and the ability to liquidate holdings will determine the winners and losers in real estate. A systemic, city-wide crash is unlikely, but individual groups will experience its effects.
The message for all parties involved – buyers, sellers & builders – is straightforward: if demand starts moving towards properties priced between ₹1-2 crore (approx. $130k-260k USD), then developers will likely start defining their portfolios to bring these properties into the marketplace; lenders will be looking at cash flow and how stable or secure their employment is; and investors will take into account liquidity risk models when deciding on existing ultra-luxury assets vs. new opportunities to invest in the ultra-luxury segment.
Policymakers could work creatively to lessen the impact of a sudden negative tech shock through skill-building initiatives and incentives for local demand.
Bengaluru’s history has been very fluid throughout; it has adapted and reinvented itself from the dotcom bust all the way to COVID-induced living! Today’s paradigm may focus more on capturing the economic benefits of technology (AI) rather than on whether AI will replace people’s jobs. Consequently, the city’s ‘skyline’ will maintain its awesomeness; however, the ‘winners’ of the skyline changing and the ‘origin’ of their confidence in the skyline is likely to change significantly.
