Mangalore’s Real Estate Market Post-COVID: Challenges and Opportunities

Mangalore, the coastal city known for its picturesque beaches and rich cultural heritage, has been a hub for real estate activity in recent years. With a growing population and an influx of non-resident Indians, the demand for affordable housing has been on the rise. However, like most other cities, Mangalore’s real estate market has been hit hard by the COVID-19 pandemic.

As the government imposed lockdowns and travel restrictions, the real estate sector in Mangalore witnessed a significant slowdown. The construction activity was brought to a halt, and site visits were not possible, leading to a delay in project completion. The temporary suspension of construction activities also led to a shortage of labor, thereby causing cost overruns for developers.

Moreover, the pandemic-induced economic uncertainty and job losses led to a decline in demand for housing. The buyers became cautious about investing in real estate, leading to a drop in prices. As per the reports, property prices have seen a decline of around 10-15% in some areas of Mangalore.

However, despite the challenges, the real estate sector in Mangalore has been showing signs of recovery. The government’s stimulus packages and low-interest rates offered by the banks have helped boost sentiments. Furthermore, the adoption of technology in the sector has made it easier for potential buyers to view and purchase properties virtually.

The pandemic has also led to a change in people’s lifestyles, with remote working becoming the new norm. This has increased the demand for homes that offer privacy, comfort, and flexibility to convert a portion of the house into a workspace. As a result, there has been a surge in the demand for larger and spacious homes with amenities such as balconies, gardens, and terraces.

Another opportunity that the pandemic has presented to the real estate sector is the development of affordable homes. The government’s push for affordable housing under the Pradhan Mantri Awas Yojana (PMAY) has led to an increase in interest in affordable homes. Developers have been quick to respond to this demand and have launched several initiatives to cater to the needs of the middle and lower-income group.

However, there are still several challenges that the real estate sector in Mangalore needs to overcome. The lack of transparency in the sector, absence of a regulatory body, and delay in project approvals remain major issues that need to be addressed. Additionally, the rising cost of raw materials and the shortage of skilled labor pose a significant challenge for developers.

In conclusion, the real estate sector in Mangalore has been hit hard by the pandemic but has shown resilience in the face of adversity. Despite the challenges, the sector has shown signs of revival and has presented opportunities for growth and development. However, to achieve sustained growth, the sector needs to address the challenges it faces and implement measures to boost transparency and accountability.