Source:Economic Times India

14th of September 2008

Karnataka’s heritage city, Mysore, known for its magnificent palaces, sprawling gardens and tree-lined boulevards, has the advantage of government backing and benefits from its proximity to Bangalore.

Several infrastructure initiatives to improve state highways are expected to improve links to the city from Bangalore, the coffee-growing Kodagu region, Kozhikode in Kerala and the hill station of Ooty in Tamil Nadu, among others. Upgradation of the existing domestic airport is nearly complete and commercial flights are expected to begin from January. Also, work on the Bangalore-Mysore Infrastructure Corridor has resumed and the doubling of the Bangalore-Mysore railway line would be completed in three years.

Mysore, about 140 km from Bangalore, is being positioned as Karnataka’s second IT city. “The IT sector helped Mysore gain prominence after Bangalore. The coming years could see the city develop as an important meetings, incentives, conventions and exhibitions (MICE) destination as travel times to the city are shorter now,” said Vineet Verma, CEO (hospitality) of Brigade Enterprises.

In anticipation of greater economic activity and higher disposable incomes, top-rung realty firms are now entering the residential market with premium projects.

Residential: The residential market is the most developed part of the real estate sector in Mysore. The north-eastern corridor is the traditional residential area and includes areas like Yadavgiri, Gokulam, Subhash Nagar, Rajendra Nagar Bannimantap and Udayagiri. Development in this area mostly consists of independent houses and a few low-rise apartments because of FSI restrictions.

The south-western corridor is the emerging residential hotspot. Projects are expected in JP Nagar & Shrirampura. The domestic airport, located at Mandakalli, is expected to provide a fillip to development around the area. The Mysore Urban Development Authority has initiated work to develop some 8,000 plots over the next two years. According to Cushman & Wakefield (C&W), average capital values for residential units in the city vary from Rs 1,500 to Rs 3,000 per sq ft for 2/3 BHK, depending on the location and quality of projects.

Commercial: The commercial office space market in Mysore is just beginning to flower. Current commercial and industrial development is in the areas of Metagalli, Hootagalli & Hebbal, located north-west of the city. Existing Grade-A office space developments are represented by Infosys, Wipro and Software Paradigms.

According to C&W, commercial office space of around 1.386 million sq ft is expected to come up in the peripheral areas over the next two years. Commercial office warm shell rents in the city are estimated at Rs 20-25 per sq. ft per month.