Bangalore’s Rising Costs and Poor Infrastructure Push Homebuyers Towards the New Real Estate Hotspot, Mysore

Bangalore, the country’s tech city, is seeing people moving to tier-2 cities like Mysore. Investment banker Sarthak Ahuja says on LinkedIn that the shift is due to two reasons. One is that the prices of property in the city are going up rapidly. The second is that the infrastructure here is getting worse.

Ahuja says traffic is unbearable, and the city is the world’s third worst for congestion. He said people are stuck in traffic for about 134 hours every year. Congestion is only one reason why people are moving. Other factors are rising air pollution and problems with water. The infrastructure in the city is not able to sustain the people.

At the same time, property prices have risen a lot, and many find housing unaffordable. Prices in prime areas have risen faster than salaries have grown. Rental income has not increased and has not kept up with the high costs of investment.

As a result, people are choosing Mysore as a better place to live. It is calmer than Bangalore and is also a great place to invest. As per Ahuja, property prices have risen by more than 50% in the past year. However, these are 30 to 50% lower than in Bangalore. Rental yields are also higher.

Prices of homes in areas like Kuvempu Nagar and Vijayanagar are from Rs. 60 lakhs onwards. Homes in posh areas like Saraswatipuram and Jayalakshmipuram cost more. These start from Rs. 1 crore. They show the demand for luxury living spaces here.

A major draw of the city is the low cost of living. The expenses here are 10 to 20% less than those in Bangalore. The Bangalore-Mysore Expressway, which was completed in 223, has helped travel across the city. People can get to any part in 15 minutes, making it a comfortable place to live.

All the top builders have taken note of buyers' interest in Mysore. They are all picking up land here for their long-term projects. Over the next 10 years, these grand housing projects will redefine the city’s skyline.

Ahuja stressed that movement is not just a problem in Bangalore. He said there is pressure on other metros like Delhi, Mumbai, Pune, and Gurgaon, too. In the last decade, there was concentratedgrowth of the real estate market in these metros. The next 10 years will see the rise of tier-2 cities as the main growth drivers.

Experts say the migration is changing the landscape of cities. As metros struggle with infrastructure and price crises, tier-2 cities are attractive options. These include Coimbatore, Mysore, and the satellite towns of Pune. They are well-suited to buyers who want to get high returns with low costs.

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