Mangalore’s Rental Market: Trends and Opportunities for Investors

As Mangalore grows in prominence as a commercial hub, the demand for rental properties is on the rise. This dynamic market offers investors various opportunities to diversify their portfolio.

Mangalore, situated in the southwestern state of Karnataka, has a booming economy sustained by a thriving port and numerous industries, including IT, education, and healthcare. This rise in commerce has led to an influx of professionals and students seeking accommodation in the city.

According to a report by real estate consultancy firm Knight Frank, the rental market in Mangalore has seen a year-on-year rise of 3%. The report states that the city’s demand for real estate has primarily been driven by the IT industry, with more and more companies establishing their base in the city.

The city’s homeowners have been quick to capitalize on this demand, with an increasing number of homes being converted into rental properties. The trend is particularly prominent in areas such as Kadri, Bejai, and Falnir, where many young professionals and students are opting to live.

Despite the growth in rental stock, occupancy rates in the city remain high. This trend has kept rental prices stable, with an average two-bedroom apartment in the city renting for around ₹15,000-18,000 per month.

However, investors should note that the rental market in Mangalore is geographically segmented, with areas that offer better returns than others. For instance, areas such as Kadri, Bejai, and Falnir tend to command higher rental yields than other areas. Investors should also consider the proximity of the property to schools, hospitals, and transportation hubs while making a purchase.

Another aspect to consider is the type of property one invests in. In Mangalore, apartments are the most popular rental properties, followed by independent houses and villas. However, one can also explore the commercial property market, which can be lucrative given the city’s buzzing economy.

The COVID-19 pandemic has temporarily disrupted Mangalore’s rental market. Many tenants have vacated their Apartments due to job losses or pay cuts, leading to lower demand and vacancies in some areas. However, experts predict that the market will recover once the pandemic subsides, given Mangalore’s strong economy.

In conclusion, Mangalore’s rental market presents numerous opportunities for prudent investors. The city’s growing economy, coupled with its high occupancy rates, makes for a promising market. However, investors must thoroughly research the market before investing, keeping in mind the geographical segmentation and type of property they choose to invest in.