Advantage Mysore

Advantage Mysore

V Nagarajan, TNN Nov 30, 2013, 01.21am IST

The spillover effects of the garden city Bangalore are clearly visible in the remarkable turnaround of tier II cities like Mysore. Known for its rich cultural heritage, the well known tourist spot covers an area of more than 40 sq.km. and is administered by the Mysore City Corporation. Situated 763 meters above the sea level and surrounded by hill ranges from north to south, it is widely known as 'City of Palaces'.

The migration of IT companies to Mysore due to its proximity to Bangalore and the sudden spurt in retailing are instrumental in driving the major property developers to the city. Yet another factor is the improvement in connectivity towards Bangalore. The Supreme Court has finally put at rest all the uncertainties shrouding the project and given the green signal to the project.

The Bangalore-Mysore corridor project promoted by the Nandi Infrastructure Corridor Enterprise (NICE) has triggered a new wave of development as the commuting time involving 146 km distance would be reduced from 3 hours to just 1 hour and 15 minutes. Among the five township projects planned en route, eco-tourism township would be located close to Mysore.

The centre will have environmental attractions, theme parks and cultural arts centre. Besides Mysore Urban Development Authority (MUDA) is actively pursuing its efforts in expanding the city in a planned manner. Availability of large tracts of land at relatively competitive prices is another reason for development. Besides Brigade group and Sankalp who have already ongoing projects in Mysore, among leading players who are entering the city specific mention must be made about Sobha Developers, Puravankara Projects and Mittal.

A recent survey by Shriram Propcare research wing in Bangalore has revealed some interesting facts about the changing pattern of investment while investing in Mysore. Among the people surveyed in Bangalore, 82 per cent are keen to invest in Mysore.

While a majority of the investors are keen for investment in developed land, others prefer built units. While 60 per cent of the people are looking for residential properties in the price range of Rs 8 lakh – Rs 10 lakh, 32 per cent opt for Rs 10 lakh -Rs 15 lakh whereas 8 per cent constitute investors for units valued above Rs 15 lakh.

With the second and even third house acquisition becoming a norm than an exception among investors, it is no wonder that the survey has revealed a similar trend for investment in Mysore. Among those surveyed, 88 per cent are opting for second home while 12 per cent have this as third or fourth property investment.

When asked for the reasons for opting Mysore as an investment destination, 37 per cent were found to be native of Mysore while 30 per cent have relatives and/or friends in the city. What is more while 70 per cent are short term investors, 30 per cent are long-term investors.

Areas undergoing realty development:Among the areas undergoing real estate development specific mention must be made about Hunsur road,Vijayanagar 4^th stage,Bogadi road, Lalit Mahal extension,  Jayalakshmipuram, Lakshmipuram, Vontikoppal, Yadavgiri and along the ring road. Besides existing golf course, Heritage golf course is coming up on a sprawling 250 acre land to be built to international standards.

The apartment culture which was trickling down slowly has suddenly gained momentum and a number of new entrants to the city are looking at developing residential properties. The influx of IT/ITES professionals is predominantly cited as instrumental in driving the demand for residential property in Mysore. Land rates are comparatively low when compared to Bangalore which is one reason for the movement of ITES companies to the secondary cities like Mysore.

Land prices rose by 40 per cent and in some areas it nearly doubled in a span of just one year, a trend hitherto unheard of in the city. Apartment prices are up by 20-30 per cent with demand exceeding supply. In areas like Vontikoppal and Yadavgiri, smaller plots with old houses are giving way to the proliferation of highrise apartments.

A significant development is that landowners are getting inextricably trapped by vested interests to grab a slice of the market. "Land owners of Mysore must be extremely cautious to fancy prices offered by a few groups just to enter into an agreement", feels Prasad Vijayapuram, CEO, Nakshatraa Sales N'marketing.

It is always better to tie up with players who have a consistent track record in the market and long-term commitment to the housing sector, he added. On the seamy side this has led to more than 50 per cent of the vacant lands in Mysore getting inextricably caught in the litigation, a situation that only prolongs the agony of the land owners in legal procedures.

Commercial development is picking up on the retail front with demand exceeding supply. The office market is yet to pick up momentum as large corporates are building campus facilities for their use now. Property developers are, however, confident that once the commuting time between Bangalore and Mysore is reduced, the scope for such projects will gradually increase in the city especially in view of the increase in the number of corporates planning to expand their operations in Mysore.

Retail prices zoomed recently from Rs 4,000 per sq ft a year ago and are now quoted at Rs 11,000 - Rs 14,000 per sq ft in prime areas like Devraj Urs road and adjoining market areas. Even the rental levels have touched an all time high of Rs 65,000 per month for a small shop.