Mangalore's Real Estate: The Impact of Local and Global Economic Cycles

Mangalore, the coastal city in Karnataka, is witnessing a growth in the real estate sector, thanks to the booming economy and the construction of multiple infrastructure projects in the area. However, the growth of the sector is largely impacted by both local and global economic cycles.

The real estate sector in Mangalore is primarily focused on residential properties, and the demand for such properties is on the rise due to the city's growing population and the migration of working professionals to the area. Additionally, the development of Industrial areas in the region has also contributed to the growth of the sector.

However, the real estate market is highly volatile and subject to economic cycles. The global economic downturn in 2008 had a significant impact on Mangalore's real estate sector, with prices dropping by as much as 10 to 15 percent. The sector gradually recovered post-2010, with the growth of the IT and ITES industries in the city.

Moreover, the real estate market is also affected by local economic conditions such as the availability of jobs, infrastructure, and transport facilities. The development of educational institutions and healthcare facilities in the area has also driven up the demand for residential properties.

Another significant factor that impacts the real estate sector is Government policies. The implementation of the RERA Act has benefitted the sector by creating a transparent ecosystem for buyers and sellers. The introduction of GST (Goods and Services Tax) has also standardized the tax system, thereby increasing compliance and improving the industry's overall credibility.

The onset of the COVID-19 pandemic has also impacted the real estate sector in Mangalore. The sector experienced a complete shutdown during the lockdown period, causing a significant loss of revenue. However, the sector bounced back quickly, with pent-up demand pushing sales numbers up.

In conclusion, the real estate sector in Mangalore is subject to various economic cycles, global, and local. However, the development of infrastructure, the presence of industries, and the favorable policies of the Government have contributed to the sector's growth. The sector's resilience during the COVID-19 pandemic is a testament to its strength and potential. As long as Mangalore continues to develop, the real estate sector will continue to thrive.