Guide for Mysore Residential Real Estate Investment
Mysore or Mysuru lies in the southern part of Karnataka. A treasure trove of heritage and culture, Mysore is also one of India’s safest cities. Furthermore, living expenses in this city are 24% cheaper than in the state capital Bengaluru.
Mysore is also the second-largest city in Karnataka. Due to its pleasant climate and lower pollution level than in Bangalore, Mysore is growing rapidly in residential real estate. Mysore is also witnessing an industrial boom to attract employees from all over India.
Transportation in Mysuru is affordable and reliable. One can easily go in and out of the city as it is well-connected with roads and rails. Bengaluru is 139 km away from Mysore, and the newly made Bengaluru-Mysuru Expressway will reduce the travel time to 90 minutes. The Shatabdi Express offers luxury and superfast travel to and from Chennai.
Owing to these advantages, Mysore is attracting real estate investors to purchase residential properties in the city. Read along to learn the benefits of investing in residential real estate here.
Top Reasons to Invest in Mysore Real Estate
The following are a few important reasons for you to invest in residential properties in Mysore.
- Booming IT Sector
As a well-planned city, Mysore hosts excellent infrastructure to support the growing IT wave in the city. This city ranks 2nd after Bengaluru as a major software exporter. It houses some of the most prominent IT clusters in Karnataka.
Global firms like Infosys, Wipro and Software Paradigm India have their offices in Mysore. These companies constitute a significant employment hub that attracts employees nationwide to this city, increasing the demand for residential spaces in Mysore.
- Centre for Education
Mysore also hosts some of the most prominent schools and universities of Karnataka. Some of the prestigious educational institutions here include the University of Mysore, JSS Medical College and Hospital, Maharaja’s College, School of Planning and Architecture and SDM Institute of Management Development.
These places attract scholars from other parts of Karnataka and neighbouring states. It leads to the demand for affordable flats, hostels and other co-living accommodation spaces in the vicinity of significant universities.
- Planned City
Compared to Bengaluru, Mysore is cleaner and hosts a pleasant climate. Moreover, to address the issue of congestion, Mysore has wider roads to provide accessible transportation to the growing population here.
Also, Mysore ranks as the 8th cleanest city in India. The city authorities are taking measures to make the city cleaner and more suitable to live in with families or alone.
Residential Real Estate Investment Opportunities in Mysore
Following are some of the localities where you can invest in residential real estate in Mysore.
Kuvempunagar is located in the southwest part of Mysore. It is one of the popular residential localities in Mysore, offering both luxurious and affordable housing. On foot, you can easily access restaurants, malls, educational institutions and hospitals from Kuvempunagar.
JSS Law College, BGS Institution of Mysore, and Gurukula Pre-University College are important educational institutions near Kuvempura, making it an ideal residence for students and their families.
Prices of residential properties in Kuvempunagar range from ₹35 lakh to ₹2 crore.
Dattagalli is another famous residential locality in Mysore. It lies near Ramakrishna Nagar and Kuvempunagar and offers frequent transportation to other parts of Mysore and the entire state.
This locality always bustles with life as several companies, shopping spaces, eateries, and hospitals lie nearby. Residents can breathe in the fresh air and enjoy the pleasant climate of Mysore in public parks located nearby. Infopine, Gtech Solutions and Intima Solutions are a few IT firms near Dattagalli. In addition, some reputed schools near this place are Supreme Public School, Chanakya Vidyalaya, and Stanley Parker’s School of Music.
Property prices in Dattagalli might range from ₹49.5 lakh to ₹2.5 crore.
Things to Consider Before Investing in Residential Real Estate in Mysore
Here are a few points for you to consider before investing in residential real estate in Mysore:
- Lease Structure
A lease is a legal document binding a property owner and a tenant on specific terms and conditions. As an investor, it would be better for you to understand the clauses mentioned in the lease structure comprehensively. To achieve this, consider seeking assistance from a legal advisor.
- RERA Authentication
The Real Estate Regularity Authority Act (RERA), 2016, mandates the formation of a RERA body in every state. This statutory body maintains transparency and accountability in the real estate industry. Every residential and commercial property in India must be registered under the RERA portal on their respective state’s website.
Similarly, every builder and broker in Mysore needs to register their properties under the Karnataka RERA portal. You can check the authenticity of your shortlisted properties here.
- Safety and Security
Safety is one of the prime motivations of an individual to purchase a property with high value. Therefore, consider conducting on-site research before finalising a residential property.
While researching, pay special attention to features like fire extinguishers, CCTV cameras and house locking systems. Tenants will prefer purchasing properties equipped with them as they ensure to promote the idea of safe residence. Also, consider conducting locality research to learn about security standards and crime rates.
Stamp Duty in Mysore
Here is a table displaying the stamp duty applicable in Mysore for purchasing residential properties.
|For properties less than ₹20,00,000||2%|
|For properties between ₹21,00,000 and ₹45,00,000||3%|
|Properties above ₹45,00,000||5%|
Registration Charges in Mysore
The table below displays the registration charges applicable in Mysore.
|For properties less than ₹20,00,000||1% of property value|
|For properties between ₹21,00,000 and ₹45,00,000||1% of property value|
|Properties above ₹45,00,000||1% of property value|
Residential Real Estate Sector in Mysore- What’s the Forecast?
The cost of living in Mysore is more affordable than in most metropolitan cities in India. Furthermore, unlike Bengaluru, Mysore offers a cleaner environment and broader roads that reduce traffic congestion. This makes it a great place to settle with families.
Furthermore, many companies are shifting their base to Mysore due to overpopulation in Bengaluru. As a result, many people in search of employment are arriving here. This further increases the demand for residential areas in Mysuru. In addition, several development projects are accelerating the growth of Mysore’s real estate sector.
The Mysore Urban Development Association (MUDA) plans to develop a Peripheral Ring Road to allow smooth transportation as this city’s population grows. This idea is a part of the Mysuru Master Plan of 2031. Moreover, a 10-lane private highway called the NICE Corridor will connect Bengaluru and Mysuru, reducing travel time.
Execution of these plans will open up scope for real estate investors to earn good ROI from residential properties.
Residential Real Estate vs Other Asset Classes
The list below highlights the differences between residential properties and other asset classes.
Residential Real Estate vs Bonds
Residential real estate offers higher returns on investments than bonds. However, bonds have more liquid markets, as finding tenants for residential real estate is more time-consuming. Furthermore, you can gain tax benefits by investing in residential real estate.
Residential Real Estate vs Gold
Residential real estate is suitable for long-term investments. At the same time, you can choose gold for both long and short-term investments. Furthermore, as buying and selling gold is easy, gold has a more liquid market than residential properties. However, you can earn higher returns by investing in residential properties.
Residential Real Estate vs Stocks and Mutual Funds
Stocks and mutual funds have a highly volatile market. As a result, you can either earn high profits or face massive losses. Therefore, you need to clearly understand this marketplace before investing. On the other hand, residential real estate does not have such a volatile market. Owing to this, residential properties offer stable returns at relatively lower risks.
Residential Real Estate vs Commercial Real Estate
Commercial properties are more expensive than residential properties, which means they carry more credit risk than residential properties. Also, you can enjoy more tax benefits by investing in residential properties. In contrast, commercial real estate allows you to earn higher ROI than their residential counterparts.
Discover More: Guide for Mysore Commercial Real Estate Investment
The table below compares asset classes based on their liquidity, volatility, risks and ticket price.
|Parameters||Residential Real Estate||Stocks & Mutual Funds||Gold||Commercial Real Estate||Bonds|
Steps to Invest in Residential Real Estate in Mysore
Here are some basic steps you can follow to invest in residential properties in Mysore:
Step 1: Fix a budget to invest in residential properties.
Step 2: Shortlist a few locations and conduct on-site research to analyse the ground situation.
Step 3: Seek help from real estate consultants to learn about prospects in the area.
Step 4: Finalise and purchase a location after checking its RERA authenticity.
Step 5: Complete the payment to transfer the residential property’s ownership under your name. Ensure to pay the stamp duty and registration charges as well.
Step 6: Consider paying the service charges to brokers or real estate consultants. (if any)
As a prime city in Karnataka, Mysore offers ample opportunities for real estate investors to earn high ROI from residential properties. To avoid falling victim to fraudulent cases and exploitation, consider adhering to the RERA norms while purchasing residential real estate.
Frequently Asked Questions
What are some residential properties that can fetch you high returns?
To earn high returns from residential properties in Mysore, you can invest in hostels, independent houses, apartments and flats.
What are some of the famous colleges in Mysore?
Mysore hosts many top colleges and universities for higher studies. Some of these are the School of Planning and Architecture, SDM Institute of Management Development, and Central Food Technological Research Institute.
Is Mysore a clean city?
Mysore holds the 8th rank in Swachh Survekshan 2022. This proves that Mysore is quite a clean city to live in. However, this city has many milestones to cover to become the cleanest Indian city.
Is Mysore safe for women?
Mysore is one of the safest cities in Karnataka. Women travellers, employees or scholars can easily stay in Mysore without worrying about their safety.