विशेषज्ञ की सलाह चाहिए?हमारे गुरु मदद कर सकते हैं
Phani
Ramalingam Kalirajan10902 Answers |Ask - Follow
Mutual Funds, Financial Planning Expert - Answered on May 17, 2025
Asked on - May 17, 2025
Do Bengaluru Real Estate reduce the cost of a house/apartments in future ? I'm really surprise to see that People are keep on buying/investing on houses even though their earnings are less. What's the miracles behind these situations? Is this due to AI ? is there any regulatory on these real estate communities ?
Ans: Your question is very important and timely.
Let us examine it from different angles in a simple and detailed way.
You asked:
Will Bangalore real estate prices fall in future?
Why are people still buying homes even with low income?
Is Artificial Intelligence (AI) causing this?
Are there any rules to control builders and developers?
Let us evaluate these step by step and provide you with a 360-degree view.
Real Estate Prices in Bangalore – Will They Fall in Future?
Real estate does not move like stocks or mutual funds.
Property price changes are slow and unpredictable.
In Bangalore, price fall is rare but price stagnation happens.
Builders usually hold prices even if demand drops.
They prefer giving discounts or free items, not price cuts.
Bangalore is a tech city. Demand comes from many IT hubs.
Migrants and job seekers keep entering the city.
This creates long-term demand in selected areas.
But oversupply can create flat price growth in some zones.
Far-off areas with fewer buyers may see some drop.
But centre areas or prime suburbs stay stable or go up.
Real estate in Bangalore is influenced by job market and IT sector.
AI may change jobs, but not immediately reduce housing need.
Will Bangalore Prices Go Down Due to AI?
AI may reduce some jobs in the long term.
But new tech also creates new jobs.
People will still migrate to Bangalore for jobs.
Housing demand continues if employment exists.
AI doesn’t directly reduce house prices.
Cost of land and materials remains same or increases.
Builders won’t reduce price due to AI speculation.
So no, AI is not pushing prices down.
AI adoption may reduce certain roles, but housing need stays.
Why Are People Still Buying Houses Even with Low Incomes?
Some people buy from peer pressure.
Others buy due to social or family expectations.
Many believe rent is a waste of money.
Some buyers assume real estate will double in few years.
Some fear future prices may go higher.
Some people get help from parents or inherit money.
Builders also give many offers and small EMIs.
People don’t always calculate full cost of ownership.
Many ignore loan interest, taxes, maintenance, etc.
Some buyers use home loan EMIs to reduce tax outflow.
All these reasons create emotional decisions, not rational ones.
Are These Decisions Wise for Everyone?
Not really.
Without cash flow stability, buying a house creates risk.
Some people stretch beyond safe EMI levels.
They skip protection like insurance or emergency fund.
Job loss, medical emergency, or loan hike can cause problems.
It is risky to buy only for tax benefit.
Without proper planning, house buying leads to debt trap.
Is There Any Regulation on Real Estate Developers?
Yes.
There is a law called RERA – Real Estate Regulation Act.
It aims to protect buyers from builder fraud.
Builders must register projects under RERA.
They must declare timelines, approvals and costs.
Delay in possession can lead to penalty.
But enforcement is still weak in some cases.
Some small builders skip RERA or delay registration.
Buyers must verify RERA number and approvals.
Property papers must be verified by legal expert.
RERA helps, but buyer must still be alert.
What Should You Do Before Buying Any House?
First check your job security.
Next check your income stability.
Keep 3–6 months emergency fund ready.
Ensure no other major loans running.
Home loan EMI must not exceed 35% of income.
Add future expenses also like school or medical cost.
Don’t buy just because others are buying.
Buying without planning causes stress.
Buying House is Emotional – Make It Financially Smart
Everyone wants to own their own home.
It gives security and pride.
But emotional decision must match financial reality.
Your house should not create money problems.
It must not kill your savings or investments.
If you can’t afford now, wait.
Rushing into house buying leads to regret.
Why Real Estate is Not an Investment Option
Real estate has poor liquidity.
You cannot sell it quickly in need.
Cost of holding is very high.
You pay maintenance, tax, loan interest.
There is no regular income unless rented.
Rental income is only 2–3% of cost.
Real estate also has legal and paperwork risks.
Good areas are costly and low margin.
Average or low areas have risk of non-appreciation.
Mutual funds and SIPs are better for wealth building.
What Happens if Job Market Weakens in Bangalore?
Real estate may become unsold or under-occupied.
Builders may reduce new launches.
Resale flats may flood the market.
Rental rates may soften.
But prime areas still stay in demand.
So choose location wisely, not just price.
Steps Before Buying Any Property
Check RERA registration of project.
Ask builder for all documents.
Compare prices in nearby projects.
Don’t believe only advertisements.
Visit actual site during working hours.
Talk to residents if resale property.
Check age of construction and resale history.
If You Still Wish to Buy – Do This
Don’t use all your savings for down payment.
Keep some cash for emergency.
Take property loan only after financial health check.
Consult Certified Financial Planner for proper budgeting.
Plan your insurance, cash flow and future savings.
Don’t Delay Mutual Fund Investing
Many people delay investing due to property buying.
But investment must run in parallel.
Mutual funds grow money faster than property.
SIPs create discipline and wealth.
Avoid direct funds.
Direct funds give no guidance or support.
Regular plans via MFD and CFP are better.
You get long-term hand-holding.
Also, active funds outperform index funds.
Index funds don’t manage downside.
They copy the market, including all losses.
In tough times, actively managed funds adjust better.
You get better return and less stress.
Final Insights
Bangalore real estate is unlikely to crash.
But price appreciation is not guaranteed.
Don’t buy emotionally or blindly follow others.
Every house buyer must check cash flow first.
Don’t compare your decision with neighbours.
Most people stretch loans without future planning.
Artificial Intelligence is not the main reason.
It’s lifestyle pressure and FOMO – fear of missing out.
RERA provides regulation, but buyer must stay cautious.
Never invest fully in property, keep diversification.
Mutual funds with CFP guidance create real wealth.
Property is shelter. It is not an investment.
Take your time. Think in all directions.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
(more)
Let us examine it from different angles in a simple and detailed way.
You asked:
Will Bangalore real estate prices fall in future?
Why are people still buying homes even with low income?
Is Artificial Intelligence (AI) causing this?
Are there any rules to control builders and developers?
Let us evaluate these step by step and provide you with a 360-degree view.
Real Estate Prices in Bangalore – Will They Fall in Future?
Real estate does not move like stocks or mutual funds.
Property price changes are slow and unpredictable.
In Bangalore, price fall is rare but price stagnation happens.
Builders usually hold prices even if demand drops.
They prefer giving discounts or free items, not price cuts.
Bangalore is a tech city. Demand comes from many IT hubs.
Migrants and job seekers keep entering the city.
This creates long-term demand in selected areas.
But oversupply can create flat price growth in some zones.
Far-off areas with fewer buyers may see some drop.
But centre areas or prime suburbs stay stable or go up.
Real estate in Bangalore is influenced by job market and IT sector.
AI may change jobs, but not immediately reduce housing need.
Will Bangalore Prices Go Down Due to AI?
AI may reduce some jobs in the long term.
But new tech also creates new jobs.
People will still migrate to Bangalore for jobs.
Housing demand continues if employment exists.
AI doesn’t directly reduce house prices.
Cost of land and materials remains same or increases.
Builders won’t reduce price due to AI speculation.
So no, AI is not pushing prices down.
AI adoption may reduce certain roles, but housing need stays.
Why Are People Still Buying Houses Even with Low Incomes?
Some people buy from peer pressure.
Others buy due to social or family expectations.
Many believe rent is a waste of money.
Some buyers assume real estate will double in few years.
Some fear future prices may go higher.
Some people get help from parents or inherit money.
Builders also give many offers and small EMIs.
People don’t always calculate full cost of ownership.
Many ignore loan interest, taxes, maintenance, etc.
Some buyers use home loan EMIs to reduce tax outflow.
All these reasons create emotional decisions, not rational ones.
Are These Decisions Wise for Everyone?
Not really.
Without cash flow stability, buying a house creates risk.
Some people stretch beyond safe EMI levels.
They skip protection like insurance or emergency fund.
Job loss, medical emergency, or loan hike can cause problems.
It is risky to buy only for tax benefit.
Without proper planning, house buying leads to debt trap.
Is There Any Regulation on Real Estate Developers?
Yes.
There is a law called RERA – Real Estate Regulation Act.
It aims to protect buyers from builder fraud.
Builders must register projects under RERA.
They must declare timelines, approvals and costs.
Delay in possession can lead to penalty.
But enforcement is still weak in some cases.
Some small builders skip RERA or delay registration.
Buyers must verify RERA number and approvals.
Property papers must be verified by legal expert.
RERA helps, but buyer must still be alert.
What Should You Do Before Buying Any House?
First check your job security.
Next check your income stability.
Keep 3–6 months emergency fund ready.
Ensure no other major loans running.
Home loan EMI must not exceed 35% of income.
Add future expenses also like school or medical cost.
Don’t buy just because others are buying.
Buying without planning causes stress.
Buying House is Emotional – Make It Financially Smart
Everyone wants to own their own home.
It gives security and pride.
But emotional decision must match financial reality.
Your house should not create money problems.
It must not kill your savings or investments.
If you can’t afford now, wait.
Rushing into house buying leads to regret.
Why Real Estate is Not an Investment Option
Real estate has poor liquidity.
You cannot sell it quickly in need.
Cost of holding is very high.
You pay maintenance, tax, loan interest.
There is no regular income unless rented.
Rental income is only 2–3% of cost.
Real estate also has legal and paperwork risks.
Good areas are costly and low margin.
Average or low areas have risk of non-appreciation.
Mutual funds and SIPs are better for wealth building.
What Happens if Job Market Weakens in Bangalore?
Real estate may become unsold or under-occupied.
Builders may reduce new launches.
Resale flats may flood the market.
Rental rates may soften.
But prime areas still stay in demand.
So choose location wisely, not just price.
Steps Before Buying Any Property
Check RERA registration of project.
Ask builder for all documents.
Compare prices in nearby projects.
Don’t believe only advertisements.
Visit actual site during working hours.
Talk to residents if resale property.
Check age of construction and resale history.
If You Still Wish to Buy – Do This
Don’t use all your savings for down payment.
Keep some cash for emergency.
Take property loan only after financial health check.
Consult Certified Financial Planner for proper budgeting.
Plan your insurance, cash flow and future savings.
Don’t Delay Mutual Fund Investing
Many people delay investing due to property buying.
But investment must run in parallel.
Mutual funds grow money faster than property.
SIPs create discipline and wealth.
Avoid direct funds.
Direct funds give no guidance or support.
Regular plans via MFD and CFP are better.
You get long-term hand-holding.
Also, active funds outperform index funds.
Index funds don’t manage downside.
They copy the market, including all losses.
In tough times, actively managed funds adjust better.
You get better return and less stress.
Final Insights
Bangalore real estate is unlikely to crash.
But price appreciation is not guaranteed.
Don’t buy emotionally or blindly follow others.
Every house buyer must check cash flow first.
Don’t compare your decision with neighbours.
Most people stretch loans without future planning.
Artificial Intelligence is not the main reason.
It’s lifestyle pressure and FOMO – fear of missing out.
RERA provides regulation, but buyer must stay cautious.
Never invest fully in property, keep diversification.
Mutual funds with CFP guidance create real wealth.
Property is shelter. It is not an investment.
Take your time. Think in all directions.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment