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Mangalore: The new real estate boom town
March 06, 2008
ONGC is planning to invest Rs 35,000 crore (Rs 350 billion) at the yet-to-come up SEZ in Mangalore. The city is already home to big companies like Mangalore Refinery and Petrochemicals Ltd, Mangalore Chemicals and Fertilizers, BASF, Nagarjuna Power, GMR Group, Suzlon, etc.
The change: These factors have had a direct impact on the prices of real estate. According to Ranjan Shetty, a leading real estate developer in Mangalore, there has been a drastic increase in the prices of land and it is going the Bengaluru way.
Land prices at Kadri, one of the best residential areas, stand at about Rs 700,000 per cent (1/100th of an acre or 435.6 sq ft). The 'apartment culture' -- so far not too popular in Mangalore -- too is on the rise. The prices of apartments (flats) in the city are steadily shooting up. Land that used to cost Rs 1,200 per sq ft is now available at Rs 2,500 per sq ft.
The prices of commercial property too have risen from Rs 500,000 a cent to Rs 25 lakh (Rs 2.5 million) in the past two years. In case of residential property, the prices have shot up from Rs 1,200 per sq ft to Rs 2,500 a sq ft in two years, Shetty added.
Mangalore's situation is so much similar to Bengaluru where exorbitant prices are being quoted, but in many cases there are no takers for the same. Shetty says there are several instances where a fancy price is quoted, but there are no buyers.
This is exactly what happened in Bengaluru too. Builders quoted fancy prices for their apartments and as of today almost half of them lie vacant.
Areas in Mangalore where prices are going up are Falnir and Ballal Bagh. The Lal Bagh area, which was more a blend of commercial and residential complexes, is gradually transforming into a pure commercial area and is competing with areas like Hampankatta and Balmatta in pricing.
Image: Nagarjuna group power plant.
Photograph courtesy: Nagarjuna
Group
Also read: Bengaluru, the millionaire city!
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