I would say YES Mangalore is a developing city. The city is very good transport network not only with the rest of the country but also internationally with a new International Airport. There are many reputed educational institutes and more to be added up in the future and roads and all the roads are getting widened and concreted. Mangalore is poised to become a preferred destination for investment offering very good returns in the years to come.
You can avail a loan up to 80% of the total cost including Stamp Duty VAT & Service Tax. Yes the land is freehold, marketable and free from all encumbrances.