Mangalore is the second fast developing city in the state of Karnataka after Bangalore. Being one of the largest coffee and cashew exporters, the city has witnessed decent growth in the last decade. Industries like automobiles, petrochemicals, iron ore, fertilisers and agricultural processing are the key economic drivers of the city. Of late, the IT/ITeS sector has also started establishing its roots in the city with companies like Infosys, Cognizant, Polaris Financial Services, Thomson Reuters, Mphasis – HP, etc. opening an office in the city. IT major, Infosys, was one of the first to move in and establish a large presence in Mangalore. Today, there are around 100 IT BPO companies in Mangalore with around 10,000+ employees. These firms are contributing significantly to the growth of Mangalore. The city has the potential to become the next IT hub because of its human capital, high literacy rates with good educational facilities and advanced technology. In the vision statement of Karnataka Technology Group (KIG) 2020 plan, the state government has put much emphasis on the development of Tier 2 cities, like Mangalore. Currently, Mangalore is contributing around 1.5% of the Karnataka total export share. The target is to move from the current 1.5% to a 5% contribution to Karnataka’s IT/BPO revenue by 2020, i.e. growing the current IT export revenue of 1,800 crore to 20,000 crore. Though growth is slowing down around the globe, Mangalore is witnessing rapid urbanisation. Local and national level developers such as Godrej, Raheja Group and Puravankara are starting to have presence in the city in the residential and retail sectors. The city has inherent demand from HNI and NRI investors. What makes this city more attractive for investment is the future development potential. Currently, the prices are in an affordable range of INR 4,000 to 5,000 psf in the premium localities like Gandhinagar, Bejai, Valencia, Falnir and Bendorewell. The average outskirt locations, such as Ashokanagar, Derebail and Shaktinagar are offering more affordable options. The properties are available in the range of INR 3,750 to 4,000 in most locations.
About the author
Surabhi Arora, leads the research team in India and has more than 13 years of experience in carrying out multi-disciplinary research and analysis in the area of finance and real estate industry. Surabhi specialises in real estate economics, policies, commercial and residential real estate research with in-depth knowledge of market dynamics across major markets in India.