The Potential of Mangalore's Unsold Real Estate Inventory

Mangalore, a city on the west coast of India, known for its beautiful beaches, stunning landscapes, and rich cultural heritage, is also one of the fastest-growing real estate markets in the country. However, the recent pandemic and economic slowdown have led to a massive pile-up of unsold inventory in the city, causing a significant upheaval in the real estate sector.

According to recent reports, there is an estimated 3-4 year worth of unsold inventory in Mangalore, totaling about Rs. 2000-3000 crore. This is a significant amount, considering the total value of the city's real estate market is approximately Rs. 8000-10000 crore. Experts attribute this to a combination of factors, including the economic slowdown, the lack of demand, and the oversupply of housing units.

The experts further suggest that Mangalore's real estate market is oversupplied with residential projects, while the commercial sector lacks genuine demand. Factors like location, infrastructure, connectivity, and job opportunities play a critical role in the demand for real estate. And Mangalore's real estate market is found wanting in some of these aspects. For instance, most of the unsold inventory is in the peripheral regions of the city, lacking proper connectivity and infrastructure. On the other hand, the prime locations of the city, such as Falnir, have comparatively low supply and high demand.

However, amidst all this, there is an emerging trend of redevelopment and consolidation of unsold inventory by real estate players. Some developers are transforming their residential projects into commercial or mixed-use developments to tap into the rising demand for office spaces. Others are exploring the affordable housing segment and integrated townships to cater to the mid-segment buyers.

Furthermore, the government's push towards affordable housing, infrastructure development, and the Smart City Mission is expected to boost the demand for real estate in Mangalore, leading to a possible reduction in unsold inventory. The government's focus on the development of the Mangalore International Airport, the expansion of the New Mangalore Port, and the setting up of a Multi-Modal Logistics Park bode well for the region's real estate.

However, the real estate sector's ability to bounce back depends on multiple factors, such as the pace of economic recovery, buyer sentiment, and developer's ability to adapt to changing market dynamics. The industry needs to adopt newer technologies, more efficient business models, and streamlined processes to overcome the challenges posed by the pandemic and oversupply.

In conclusion, the unsold real estate inventory in Mangalore presents both challenges and opportunities for the sector's players. Though the situation seems grim, there is a possibility of consolidation, redevelopment, and the emergence of newer segments, such as affordable housing and commercial developments. The sector needs to adopt a proactive approach towards market trends, consumer behavior, and regulatory changes to stay relevant and tap into the potential of Mangalore's real estate.