Real estate presses panic button in Mysore

MYSORE: When Bangalore sneezes, Mysore catches a cold, says a veteran developer borrowing a popular cliché.

He is referring to the sudden fall in property demand in Mysore. After Bangalore, Mysore has been the most attractive real estate investment venue for the moneyed Mumbaikars and Bangaloreans.

Despite claims to the contrary, Mysore realtors suddenly find themselves in an unenviable situation. The value of the sites and apartments, according to reliable sources within the industry, has come down by 15 - 20 per cent in just about three weeks.

Mysore has, in the recent past, been drawing investors in droves from within and outside the states after property prices of Bangalore had hit the roof. Even the "neo-rich" IT personnel found Bangalore property scalding. There then took place a race for prime plots in the nearest "Heritage City." In terms of 'quality of life' such as greenery, good roads and less crowd, Mysore beat Bangalore and the big players like Sobha Developers, Brigade Group and Leo Builders made Mysore their home.

Sources with Mysore Chapter of Builders' Association of India (BAI) told DNA the enquiries for apartments and luxury villas have gone down by 30 per cent since October second week. This has left them wondering what was happening. Have they made a miscalculation or is it a temporary slump, nobody really know.

Pradeep, a real estate dealer who has been in the business for the last two decades says, "Mysore never saw the kind of demand it witnessed in the last few years. Sites were sold before they hit the advertising board, just five years ago.
Plot after plot, even in suburbs, was blocked by potential builders who wanted to cash in on the growth. But the fall in demand taking place in the past few weeks is alarming."

Sub-registrar's office which otherwise used to be doing brisk business with 8 to10 registrations a day, now has just one or two," he said. This, he points out is despite this being a festive season when people planned major investments.

"Last year this time, registrations touched an all time high with an average 30 a day." said a lady clerk working at sub-registrar's office.

According to BAI sources, the situation was aggravated by many factors, besides the psychological slump. Nagesh, who has been working closely with BAI says, "When land was earmarked for SEZ near Mysore, industries rejoiced. But, the power scarcity proved a big blow. Slow progress of infrastructure development and political instability added to the woes. It was thought, Mysore, which had earned a major chunk of funds up to Rs 1,800 Cr under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) would wean away many big real estate players from metros. An airport was also thrown in to woo investments. But, nothing seems working.

Now, Mysore has turned into an investor's nightmare with sharp decline in prices at the peak of the season. Apartments or luxury villas find no takers," Nagesh adds.

The nearby Hassan district, which too witnessed a similar growth as Mysore in the recent years has also witnessed a fall in demand and consequent prices.

Developers seem indeed perplexed at the situation. Apart from announcing lollipops and hoping that situation would improve, they are devoid of any fresh ideas.

"We have announced attractive plans and packages with great returns. We just hope the markets will get better," Nagesh says.

The upshot of it all is that realtors are unwilling to climb down, and investors are equally vehement. The result is stalemate.

Mysore losing its serenity to the IT culture

Mysore on my mind

The article fails to recognize that Infosys has a training center in Mysore. Most IT companies operate from premises located in an STP and now SEZ. There are no tax incentives otherwise. Infosys is on neither so it will end up with being a hub with migrant trainee population. Infoys's Sarjapur road campus will be the biggest whenever it is built. As for others am sure IT companies are looking out 5 years into the future and acquiring land. Economic times and the bennett coleman company are ad-space sharks which aid the land sharks. All these articles are written with an intent to scare the common bangalorean that Mysore will soon become unaffordable. There is some truth in that but I think that will take another 5 years. The competition is not between end uses to acquire plots and land. Its between big developers to acquire large parcels of land at low prices. In this context buying a plot with a time frame of 5 years doesn't look to be a bad idea. Interestingly the hype over devanhalli seems to be died down. People now appreciate that building infrastructure takes 10x more time then the time to move prices up.

Soaring land prices in Bangalore, realtors battle it out for space in Mysore

MUMBAI/BANGALORE: Soaring land prices in Bangalore have led to a rush by developers to secure space in Mysore, the heritage city of Karnataka. The influx of IT/ITeS professionals is seen as instrumental in driving the demand for residential property since land rates in Mysore are low compared with Bangalore, industry officials said.

Currently, residential real estate prices in Bangalore vary anywhere between Rs 2,500 per sq ft and Rs 14,000 per sq ft. In Mysore, land prices have shot up significantly, said Cushman & Wakefield joint managing director (India) Anurag Mathur. The asking rate for land in the new outer ring road (ORR) area is in the range of Rs 1,200-3,000 per sq ft (Rs 5.2-13 crore per acre approximately) for converted land. In the outskirts (beyond ORR), it is in the range of Rs 70 lakh-2 crore per acre.

In comparison, a year ago, the rates were approximately half the present price range. Within the city, prices varied between Rs 600-1,500 per sq ft (approximately Rs 2.6 crore-6.5 crore per acre) and in the outskirts between Rs 25 lakh-1 crore per acre. The BMIC is likely to further fuel growth in this market. The Future Group’s real estate fund Kshitij has bought five acres near Mysore Palace to develop a mall while Shobha Developers is developing another five acres property as retail property. Delhi-based real estate major Unitech is also developing another one acre in Nazarbad as retail property.

A majority of these malls are expected to be up and running by 2010, by which time there would be enough demand for retail space in the city. DLF, another Delhi-based firm, is planning to build its biggest residential project in Bidadi which is on the Bangalore Mysore expressway and the upcoming inter-city infrastructure corridor. Central Mysore has a large unorganised retailing base and organised retailing in the city is still in the nascent stage. Shopper’s Stop and Inox are expected to mark their entry in the near future

“At present, the vacancy levels are in the range of 10-15%, with some of the complexes developed to house malls now being used as commercial space. There are no operational malls in the city. However, this is expected to change, with five planned malls having a total area of 1.7 million sq ft expected to be operational in the next two years,” said Cushman & Wakefield joint MD-India Anurag Mathur. Property experts said that as real estate prices in Bangalore have touched its upper limits, the developers have started targeting Mysore. Many IT and software companies, which have been eased out of the mainstream in Bangalore, have now chosen Mysore as the next destination.

“The IT sector helped Mysore gain prominence after Bangalore. The coming years could see the city develop as an important MICE destination since travel time to the city is shorter now,” said Brigade Enterprises CEO-hospitality Vineet Verma. Many domestic IT companies have already started their campuses in Mysore, notable among them being Infosys. According to reports, Accenture, IBM, Cognizant Technologies and Honeywell too might extend their operations in Mysore. Wherever IT companies go, they usually provide a push to other residential and retail sectors too.

Mysore is hot property

Times of India reports

Property prices in Mysore have doubled in a year’s time. IT professionals from Bangalore are looking at parking their money in property here with a second or even third site. Deepti Ganapathy
reports

Nearly 7,000-8,000 sites are up for grabs in Mysore today. And this translates into 1.6 crore square feet of residential plots in the city. The scenario in the apartment market too is buoyant. A whopping 3,000 flats are expected to be made available by the end of this year. This translates into 30 lakh square feet of private housing space in the coming year. Nearly Rs 600-700 crores is being pumped into these private housing projects in the city by property developers.
Of the enquiries real estate consultants receive, nearly 30 percent are from IT professionals, and that too from techies based in Bangalore. Most of these IT professionals are looking at making a second or third investment here, and 15 percent of these techies are actually investing in the city. The real estate market is the city is on an upswing. Property dealers say prices are surging and they will continue to do so in the near future, and that this is the right time to invest in property here.
In the light of strong and proactive initiatives from the State Government, including providing quality infrastructure and a rapidly responsive administrative system, Mysore has emerged as a front-runner in attracting investments. An average increase of 40-60 percent in residential plots within the city or fringe areas over the last 6-12 months has been reported. Vijayanagar Stage IV, Dattagalli, Srinagar, and Rajivnagar, with substantial offtake, have registered increases in prices.
While a majority of the investors are keen on investments in developed land, others prefer built units. 60 percent of the people are looking for residential properties. 70 percent are short-term investors, while 30 percent are long-term investors. "Investors today are very knowledgeable. They are looking at buying sites in areas where development is happening. The Ring Road is today a hotspot for potential investment," says Radhakrishna, a city-based real estate consultant. According to most developers there are plenty of sites available in the city. In a matter of months, the prices will soar again.
Most of the IT professionals who are buying property here, are working in Bangalore, and have invested here, in anticipation of the city being tipped to take a good share from the IT capital in a matter of few years. The Bangalore-Mysore Infrastructure Corridor Project which will reduce travel time to an hour and a few minutes, has also been a factor that has worked on the minds of investors. The proposal by the IT Secretary to introduce AC buses and trains exclusively for the techies to commute between the two cities has added to the government's commitment to give the city a major thrust.
According to D Srihari, a property consultant in the city, smaller investments too command good appreciation. "It is safe to invest in a plot that has a value of Rs 500-700 per square feet, as the returns will be high after a few months".
Ring Road brings good returns
The Outer Ring Road that runs along the city's periphery, where land is available, is a good place to invest in. With the city rapidly growing, and the city's old localities already bursting at their seams, its time to look beyond. With the Bangalore-Mysore Infrastructure Corridor Project, IT belt, textile park, and airport located in the vicinity of the Outer Ring Road, the potential of development along this stretch is immense. It is for this reason that sites are being picked up in Vijayanagar Stage IV, Dattagalli, Rajivnagar and Srinagar.
Variety of layouts
available
As of now, there are three types of layouts available in the city. Layouts developed by Mysore Urban Development Authority and Karnataka Housing Board are well-developed layouts that will be available after around 15 years from the time of application. Then there are the layouts formed by Societies. As of now, there are 25-30 acres of land available under these layouts. Also, there are layouts formed by private developers.

Mysore Road-Magadi Road arc to host IT corridor

The new boomtowns in Bangalore

Bangalore: IT majors crying for space in Bangalore can say cheers: a 1,000-acre dedicated hi-tech corridor has been proposed between Magadi Road and Mysore Road for clean industries in the Comprehensive Development Plan (CDP). The corridor will be 17-29 km from the city centre and will house IT and IT-enabled service industries. This will ease the pressure on Whitefield and Electronic City areas, where the IT industries are concentrated.
The corridor was proposed and integrated with the Master Plan 2015 prepared by the Bangalore Development Authority (BDA). It was approved by the state cabinet on Friday. The government has asked the BDA to fast-track this corridor. BDA commissioner M K Shankerlinge Gowda told Sunday Times of India that the Karnataka Industrial Area Development Board will be asked to start land-acquisition process by next week as BDA is to receive revised CDP from the government by then.
The corridor will have tall glass-andsteel skyscrapers, with the CDP allowing vertical growth in this zone. The floor area ratio has been doubled to four now. The additional FAR has been granted as the minimum width of roads stipulated here is 100 ft. “The proposal is to set up 10 integrated townships of 100 acres each with international-standard amenities. They will be developed through a global tendering process. Ten top-of-the-line developers will be short-listed. The concept is plug-and-play for offices, Gowda said.
The BDA doesn’t foresee any land acquisition issues as the corridor area has been marked clean-industry zone. The BDA will share developed land with landowners here. “It’ll be on 60:40 ratio, and land owners will gain,” Gowda said.
The corridor can become an instant hit, say industry pundits. Water, infrastructure and space have been addressed. Dearth of water and infrastructure issues raised by IT industry captains in Whitefield and Electronic City belts have been addressed here.
The Master Plan has drawn up a connectivity network. The existing Bangalore-Mysore four-lane road, Mysore-Bangalore double-track, monorail connectivity, Peripheral Ring Road, Satellite Town Ring Road, BMICP road and NHAI’s proposed Intermediate Ring Road will ensure smooth movement of traffic.
FINDING A NEW HOME
Hi-tech corridor will have 10 integrated parks, each of 100-acre size on either side of a six-lane road
60% area earmarked for residential purposes and guest houses; 37% for office space
3% for commercial development, including shopping malls and multiplexes
What they say
The focus currently is on the southeast quadrant and towards Devanahalli airport. Besides, developing infrastructure along the Mysore Road-Magadi Road corridor is a far cry, considering the delays we are seeing in building the infrastructure to get to the upcoming airport. — Juggy Marwaha, head, sales, RMZ, a commercial property development company
Any initiative to create new infrastructure is welcome. But we need to do it with speed, planning and transparency. — Kris Gopalakrishnan, president, Infosys Technologies
Instead of the government diverting its focus, it should allow the Nandi corridor to be completed. — Mohandas Pai, director, HR, Infosys

Cauvery stir chokes real estate in Mysore

Mysore, Mar. 30 (OSR)- The Real Estate business, which had witnessed a sudden boom in city some months back, seems to have nose-dived. The realtors attributed it to the Cauvery agitation which began on Feb. 5 soon after the Tribunal delivered its final verdict.

The number of property registrations in the two offices of Sub-Registrars have gone down considerably thus affecting the revenue to the State's exchequer.

The revenue by way of registration and stamp duty, which was Rs. 14 cr. per month in Mysore (North) Sub-Registrar's office and Rs. 6 crore in Mysore (South) dipped to Rs. 8 crore and Rs. 4 crore respectively after the Cauvery stir erupted.

Mysore (South) which registered 1,500 properties per month earlier, could register only 800 properties since the stir began. Officials say that the fall in property registration was due to the ban on the registration of revenue sites and conversion of agriculture land.

Real Estate agents and developers dispute this saying the disturbed atmosphere has hit the market leading the slump in property value.

According to an agent, the property value fell as potential investors from outside are reluctant to do business in Mysore.

Investors from North India, particularly Mumbai, Andhra Pradesh and Tamil Nadu, who were thronging Mysore in anticipation of major industries starting their units here, have backtracked as no miracles are happening here.

When there are no investors, the land value is bound to crash. A 40'x60' site in Vijayanagar, which commanded a price of Rs. 25 lakh in December last is now available for Rs. 20 lakh, recording a fall of 20 per cent.

Relators feel that the crash will continue further if the normalcy is not returned.

Realty show indicates boom in Mysore

Times Of India reports

The real estate fair My Realty 2007 held in Mysore last week drew a good many visitors looking at buying property in Mysore. The exhibition was organised by the Builder's Association of India (BAI), Mysore Chapter and Times Property.

BAI, Mysore Chapter Secretary M B Nagakumar said that a whopping 22 lakh square feet of housing is expected to be created by the more than 100 new apartment projects which were on display at the show. Visitors from other places evinced keen interest in the show. Darshan Prabhu, a realty investor from Mumbai, who was at the show, said that since Mysore is a growing city the realty segment is in for a boom.

Exhibitors said they got many enquiries and were quite happy with the response. The show was used by some builders to launch their new projects in the city. Some Bangalore and Dubai-based builders, who chose this platform to showcase their projects in the city, were happy with the leverage the show gave them.
Mysore's Deputy Commissioner and Chairman of Mysore Urban Development Authority, S Selva Kumar who inaugurated the show noted that the city has been growing by leaps and bounds in the last three years, and this calls for a lot of thinking from administrators and builders. "We need to focus on satellite towns and vertical growth to meet the requirements of the future and decongest the core city area", he said.

B R Badarinath, Chairman, BAI, said that the BAI's focus has always been on developing Mysore gracefully. Over 40 developers put up their stalls at the fully air-conditioned venue, showcasing their projects in the city. Financial institutions too were at the exhibition, to provide immediate approvals for home loans. A Ravindra, Chairman, My Realty 07 said more than 14,000 people visited the show, out of which 30 percent consisted of the IT workforce from Bangalore. According to K Sriram, State Chairman, BAI, this year will see a lot of developments happening in the realty sector. "Many foreign realty firms were found to be showing interest in the city's growth and they are quite bullish about Mysore's real estate trajectory", he said.

Tier 2 cities in bubble now

Hectic builder activity in small towns
Source : Moneycontrol.com

A snapshot of the real estate scenario in Vishakapatnam, Mangalore, Mysore, Coimbatore and Cochin.

Vishakapatnam

A number of Grade A integrated townships are springing up in the city - mostly in the peripheries towards the north east - in Madurawada and Rishikonda.

Apartment prices here are up 33% over the last three months. Vepagunta is another area in the northern outskirts where the housing board has taken the initiative to develop a 52 acre township.

Mangalore

In Mangalore, the area between Bijai in the northeast to the KS Rao Road continues to be in demand but industry watchers say that the demand is primarily from investors at this point.

Nantoor too has witnessed an increase in demand with an appreciation of 5% in two and a half months.

Bangalore based Purvankara Group plans to develop between a 40 to 75 acre township near Bondel in the city's western outskirts, while the Raheja Group from Mumbai is developing a 100-acre township in Kulai in north Mangalore. Thirty acres of the township has already been handed over to a Singapore based software company for their set up.

Mysore

In Mysore, the north and northwest belt of the city is where all the residential activity is concentrated. Jayalaxmipyram has seen the maximum growth over the last two months with an increase of 10% in apartment prices. Vijaynagar too is in demand. The Prestige Group from Bangalore has its project underway here.

Further north, the Sankalp Group is developing a 28-acre township in Yadavgiri. In the south of the city, development of villas is being proposed in Koodanahalli and Nanjangud. The average price quoted for villas is about Rs 3000 per sq ft today.

Coimbatore

Avinashi Road continues to be in huge demand in Coimbatore. Apartment prices have touched Rs 3,500 per sq ft now - up 9% in two months. The Peelamed area along Avinashi Road is also witnessing some demand now. Shreeram Properties have launched their project in Pellamed at Rs 2100 per sq ft and villas are priced at Rs 2,600 per sq ft.

Sai Baba colony too has seen a significant increase over the last two months, with close to a 50% appreciation, and higher end projects now command Rs 4000 per sq ft.

According to estimates, approximately 3,000 apartments are under construction in Coimbatore. Major development is also underway on Trichy Road and Mettupalayam Road where many developers hold large land parcels.

Cochin

Lastly, in Cochin, new developments continue to spring up along the suburban belt of Kakkanad, Edappally and Kalamasery. The demand for residential space has increased significantly here and national level players like Puravankara, Shobha, Brigade Group, DLF, Prestige and Dubai-based Emaar groups have now joined the development bandwagon in the region.

The traditional prime area of Marine Drive is also not loosing steam � in fact, prices have touched a high of Rs 6,500 per sq ft there, compared to Rs 2,000 per sq ft last year.

Bangalore IT majors eye Mysore option

Business Standard reports

Migration of IT companies to Mysore due to its proximity to Bangalore (150 km) is driving residential and retail real estate developments and pushing up prices in some parts of the city.

Mysore is to get heritage funding under the 'Jawaharlal Nehru National Urban Renewal Mission' and in addition to this, a number of other infrastructure projects like the completion of the Bangalore-Mysore expressway, upgradation of the existing airport and doubling of the Bangalore-Mysore railway track, are expected to boost the city's growth.

Once the commuting time between Bangalore and Mysore is reduced, the scope for office market development will increase in the city in the view of increasing number of corporates planning to expand their operations in Mysore.

As real estate cost is rising in Bangalore and its suburbs, many corporates have already begun to turn their attention to this tier II city. Here, Mysore fits in well for it provides a good alternative with easy availability of land and growth potential.

Due to demand for industrial land in the city, especially in the north-west, the Karnataka Industrial Area Development Board, the nodal agency to develop industrial layouts, is busy acquiring land to facilitate investments.

"Currently, due to numerous policy measures (to deflate the property bubble) by the central and state governments, land transactions have come down by 25 to 30 percent in Mysore," said Dhirendra Mehta, advocate, familiar with land registrations in Mysore.

"This is a temporary phase but in long term, the city is expected to emerge as an extension of Bangalore and may attract investors once the key infrastructure is in place," he added.

Due to the availability of land at relatively competitive rates, a number of Bangalore-based developers have entered the real estate market in Mysore, said Knight Frank, a international property consultant in its report on 'Emerging growth centres'.

Besides Brigade Group and Sankalp who already have ongoing projects in Mysore, other leading developers like Sobha and Purvankara are considering setting up their residential projects in the city.

But it is local players who are already working on strategies to promote Mysore as a second home to individuals and corporates in Bangalore. What helps is Mysore being an important educational, commercial and administrative centre with a high literacy rate of 84.5 percent, greater than the state average.

According to Knight Frank, "The city's growing attractiveness as a commercial and IT destination offers vast potential for development. Till now the city has not seen much development on the retail front, but with an increase in population, there exists significant potential for retailers. A number of mall developments are currently in the pipeline and private developers such as Sankalp, Brigade, Premier Properties and Mittal Builders are developing mall space of about 1.7 million square feet over the next two years."

As for the capital values in Mysore, prime residential property are in the range of Rs 2,000-3,000 per square feet, while residential projects in the suburban locations are quoted in the range of Rs 1,400-1,900 per square feet.

Developments of villas are being proposed in Koodanahalli and Nanjangud. The average prices quoted for villas are about Rs 3,000 per square feet and rentals for office space in the CBD of the city are charged at Rs 46-51 per square feet per month while capital values exist at Rs 4,500 per square feet.

In suburban locations, office space rentals are in the range of Rs 25-30 per square feet per month and capital values are quoting at around Rs 2,500 per square feet.

The city currently boasts of major IT and non-IT campuses like Infosys, L&T Infotech, Wipro and Software Paradigm India. In addition to this, Mysore houses many non-IT companies like Reid & Taylor, L&T Electronics, S Kumars, Kirloskar Gensets, Bharat Earth Movers, Venlon Polyster Automobile Axles and South India Paper Mills.

During the last few years, Mysore has been witnessing unprecedented growth in real estate, with a large number of housing co-operative societies having secured land for development of residential colonies. This has set the base for the city to propel on its own.

NICE work kicks off

If there was a parallel the Mumbai-Pune expressway is probably a good analogy to the NICE corridor. I hope Mysore doesn't go the Bangalore way.

DH News Service, Bangalore:
The Nandi Infrastructure Corridor Enterprise (NICE) on Friday kicked off work on a village road that would supplement its ongoing Bangalore Mysore Infrastructure Corridor (BMIC) project.

The Nandi Infrastructure Corridor Enterprise (NICE) on Friday kicked off work on a village road that would supplement its ongoing Bangalore Mysore Infrastructure Corridor (BMIC) project.
Work on the road has been taken up following a request from residents of Doddabele, a village that falls on the BMIC route, near its clover-leaf interchange.
The new 800-metre road will connect Doddabele and Mysore Road, sources said. The road used by villagers has been in a bad shape for years, they said. On Friday, the project was kicked off with a pooja by residents of Doddabele.