Booming Real Estate in Mysore

The real estate scenario in Mysore is entering a booming phase as the municipal corporation of the city has issued more than 100 land permits to builders for developing residential communities. The city’s peripheral and arterial roads, particularly the ORR or Outer Ring Road have shown the highest possible development. For a plot measuring 240 sq. yard in Vijayanagar IV, you have to pay roughly Rs 15 lakhs, something which cost only Rs 4 lakhs previously.

Property prices in Mysore are going up in leaps and bounds and they have gone up four folds too in some areas, the trends make local property dealers and developers that in some areas the prices will go up three fold at least in the next 1 year. The value of agricultural lands by the Outer Ring Road has gone up by 10 times almost within a span of 5 years.

The rise has been across all kinds of property segments. For a residential plot which measures 100ftX80ft in the Ballal Circle area, you would have to pay Rs 60 lakhs to Rs 70 lakhs now, which was actually selling for only Rs 45 lakhs previously.  Rapid construction activities due to infrastructural development and arrival of corporates for setting up offices have led to this increase in property demand and prices.

For the high end projects in prime locations with top notch amenities in Mysore, per square feet rate is roughly Rs 2,000 to Rs 3,000 whereas for projects in peripheral areas, the per square feet rate comes to roughly Rs 1500 to Rs 2000. Nanjangud and Koodanahalli are two areas where villas are being developed for Rs 3000 square feet. The latest additions to Mysore’s residential colonies are Kuvempu Nagar, Vijaynagar, Nivedita Nagar, Jayalakshmipuram and Dattagalli. These areas have had the highest appreciation in property prices. The price of property in the new colonies began with Rs 250 to Rs 500 per square feet but they have gone up to Rs 3000 to Rs 3500 in the three years that followed. With the quick appreciation in property prices, house for rent in Mysore shall also witness an increase in rental values.

The market rates prevailing are roughly Rs 2100 per square feet in Siddhartha Nagar whereas in JayalakshmiPuram and Gokulam I the rates are a little higher at Rs 2500 to Rs 3000 roughly. In areas such as Vijaynagar I, II & III, the demography is becoming much cosmopolitan and there has been a quick growth in apartment communities where for an apartment you would have to pay around Rs 35 lakhs to Rs 39 lakhs.

Traditionally, Mysore has the advantage of exceptional connectivity, wide roads, large plots and pleasant weather. Coupled with the low price and current ancillary industries, many Biotech and IT companies have started operations in Mysore which has resulted in a slow and steady rise in the residential sector. Continuous rise in prices for developed plots and apartments in Tier I metros have brought about a need for the mid income group and investors to look at secondary towns for real estate investment. For people residing in Bangalore, Mysore offers a number of options to invest in today at prices which are quite competitive.

Moreover, there is a sudden increase in both the price of land and apartments which has persuaded investors to dive headfirst into investing in Mysore. With the expansion of the IT sector in Mysore, a number of IT employees are buying apartments here or looking for house for rent in Mysore.

The increase in demand for developed land parcels has been there for couple of months, as per inside information. As a matter of fact, some developers operating in North Mysore sell roughly 50 to 60 plots in a month. There is a reason for the increase in demand of developed plots in the city. Investors believe that the developed plots are affordable and will see an increase in price over time.

For developed plots, the prices range between Rs 500 to Rs 1000 per square feet depending on the developer, location and vicinity of landmarks and potential for growth of the areas nearby. Even in city areas, the prices of apartments range between Rs 30 lakhs and Rs 60 lakhs and the sale of plots are encouraging, according to realtors. Some of the leading construction giants of Bangalore like Brigade and Sobha have already started residential community projects in Mysore. Builders such as Salarpuria are poised to enter the market while Puravankara have been allotted properties in Mysore already.

There have been real estate developments in places such as JP Nagar and Eliwala where a number of projects have already begun. Builders have already reported steady increase in sales and land development is going on with full force through the city. End users planning to buy a house in the city prefer apartments whereas long term and medium term investors prefer to go for developed sites, as per realtors. Almost 30 percent of the real estate market in Mysore comprises of NRIs. On an average, builders sell 4 to 9 apartments in a month. Some of the builders which are already involved with construction here are Sankalp, Mittal Builders, Manasa Developers, Value Design Build etc.

Prestige Mall is being built which would boost the retail sector of the area. A couple of software companies in the middle segment and start-ups spearheaded by erstwhile employees of top companies are starting their offices here which are pushing up demand for office space.

Some Jet Airway’s flights are schedules to depart from Mysore and closeness of the city to Bangalore are also contributing to the decision of entrepreneurs choosing to locate their offices here in Mysore. The Comprehensive Development Plan or CDP, which got delayed, is now in its final preparatory stage and it may cover development plans till 2025 even.

The work of zoning is in progress now and there is some scope of including larger areas under Mysore Urban Development Authority. Strict norms for issuing completion certificate from MUDA have forced developers to stick by the timeline of completion of projects by builders. This will lead to increased availability of house for rent in Mysore.