Mysore Realty on a growth path

Mysore, located in the southern state of Karnataka, is fast developing as an important Tier-II city in India. Poised to break into the list of the 50 ‘million-plus’ cities in India, it would soon be pushing for the status of a ‘metropolitan city’ as well. The shifting demographic pattens as well as the increasing rate of urbanisation in Mysore is bound to have a positive impact on the future realty trends of the city.

Population trends:

According to projections, the population of the city is estimated to be about 1.2 million, based on the population growth index of 22.2%. Based on the current growth rate, the population of the city is expected to cross 15.7 lakh by 2020, and 22 lakh by 2030. This will only add to the woes with regards to demand for land and housing.

Trends in residential realty:

While the population growth of Mysore along with increased urbanisation will result in increased demand for residential property, the long-term impact of this situation will require indepth study. With land currently available in huge parcels across the city, its horizontal growth will continue until there is by and large a saturation in land supply. Following that, the city will see more of a vertical growth were demand for multi-storey apartments will be more pronounced due to the exhaustion of available land.

The land prices in Mysore range between Rs.1000-3000 per sq.ft depending on the locality and the infrastructural facilities there. Some of the key localities across the city where plotted land is in demand are Bogadhi, with the average price of Rs.1621 per sq.ft, Elavala with Rs.647 per sq.ft, Hunsur road with Rs.544 per sq.ft, Nanjangud road with Rs. 657 per sq.ft and Viyaya nagar with Rs.2580 per sq.ft.

Development of satellite townships:

The exhaustion of available land within the city limits could result in an exodus to buy land on the outskirts of the city. This could lead to the development of satellite townships on the fringes of the city. According to current trends, the value of land within the city limits has exceeded the budget of the salaried class. This has resulted in the demand for land being more pronounced along the outskirts of the city.

Spread of Mysore:

The City Development Plan (CDP) was submitted to the Central government under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). According to the CPD submitted, the spread of Mysore was supposed to be about 15,600 hectares in 2011-12, which is approximately about 156 sq.km. This is an increase from the 105 sq.km that was the city’s spread in 1991. From this, the total area that was available to be used for residential purposes was about 6,098 hectares. This is an 105% increase compared to the 2,850 hectares that was applicable in 2001.

Factors influencing realty growth:

The slow but gradual industrialisation of Tier-II cities like Mysore has brought about a change in the demographic pattern of people interested in investing in realty. Accordingly, it has been seen that the maximum number of people interested in investing in realty in the city is between the age range of 35 and 50. This gradual shift in the population profile as well as the drop in the average age of investment in realty will enable in enhancing the growth of realty in future. Based on studies, it has been found that the average age of first-time buyers has been steadily declining through the years across all major cities. This is due to the increase in salary as well as disposable income as well as the easy availability of housing finance. This is applicable with Mysore as well.

Connectivity to Bangalore:

It is expected that the demographic profile of Mysore will be altered further in the coming years once the Bangalore-Mysore infrastructure corridor becomes operational. With better connectivity to Bangalore expected as a result of the track doubling work between the two cities set to be completed soon, the commuting time between the two cities would be further reduced to about two hours. This is likely to result in further investment in realty in Mysore, thereby creating more jobs as well as giving a boost to the service sector.