Mangalore’s Real Estate: A Comparative Analysis with Other Cities

Mangalore, a city located in the southwestern region of India, is witnessing a rapid transformation in its real estate sector. With the expansion of industries and the growing economy, the demand for residential and commercial properties has risen significantly over the past few years. However, how does Mangalore’s real estate market compare to other cities in the country? A comparative analysis of the key metrics can provide valuable insights into the challenges and opportunities in the sector.

Firstly, let’s take a look at the overall housing price trends in Mangalore. According to data from India’s National Housing Bank, Mangalore experienced a growth rate of 9.4% in the average housing price index from the fourth quarter of 2019 to the fourth quarter of 2020. This is significantly higher than the national average of 4.4%. In comparison to other cities in the state of Karnataka, such as Bangalore and Mysore, Mangalore’s housing prices are relatively lower, making it an affordable investment option for buyers.

However, when it comes to rental yields, Mangalore lags behind other tier-II cities in the country. In a report by Knight Frank India, Mangalore’s rental yield for residential properties in 2019 was around 3.5%, lower than that of tier-II cities like Jaipur, Ahmedabad, and Coimbatore. This indicates that the rental income potential of properties in Mangalore is not as attractive as that of other cities, which could be a concern for investors looking for stable returns.

Apart from the rental yields, infrastructure and connectivity also play a crucial role in determining the attractiveness of a city’s real estate market. In this aspect, Mangalore has shown significant improvement in recent years. The city’s transportation infrastructure has received a boost with the expansion of Mangalore International Airport, which now operates flights to major Indian cities as well as international destinations. The development of the new Mangalore Smart City project is expected to further improve the city’s infrastructure and quality of life, making it a more attractive destination for investors and homebuyers.

Another aspect that sets Mangalore apart from other cities is its coastal location. The city’s proximity to the Arabian Sea and its scenic beauty makes it a perfect destination for holiday homes and beachfront resorts, catering to the growing tourism market in the region. The development of the New Mangalore Port is also anticipated to drive growth in the commercial real estate sector in the city.

In conclusion, Mangalore’s real estate sector has shown significant growth potential in recent years, thanks to the city’s expanding economy, improving infrastructure, and coastal location. While the city’s housing prices are relatively lower than those of other cities, the rental yield potential may need to be improved to attract more investors. Nevertheless, with the ongoing development projects, and tourism industry poised for growth, Mangalore is likely to continue attracting real estate investors in the years to come.