Realty prices on the rise in Mysore

Focussed as the next growth city after Bangalore, Mysore is witnessing a big boom in commercial property values. The main attraction for businessmen and traders is the D Devaraj Urs Road, which is recording a high value both in respect of rental and sale.

The demand is so high here that a shop premises is quoted anywhere between Rs 11,000 to Rs 14,000 a square feet. A vacant 15x30 shop building is getting a minimum offer of Rs one crore and if the ground floor is rented out the offer is less by about Rs 25 lakh. A fully vacant building on a 30'x30' plot is being quoted at more than Rs 2 crore with vacant possession and Rs 1.5 crore if rented already.

This prominent commercial road has overtaken the earlier Sayyaji Rao Road in its commercial value, as almost all the buildings are owned by private parties, while in Sayyaji Rao Road, which has been pushed to second place now, most of the buildings belong to the Mysore City Corporation.

Though some of the old families of Mysore own property here, most of it is under litigation. Hence, all new businessmen are looking towards the prestigious Devaraj Urs Road, which was formed about a quarter century ago, to open shop.

As a result, even the rental value here has touched an unexpected peak at Rs 65,000 a month for a 400 square feet shop premises with three floors - ground, mezzanine and first floor, while the second highest is fetching a monthly rent of Rs 60,000, according to a prominent real estate agent of this area P K Subba Rao.

But even at this rental offer, shop premises are not available on the ground floor in Devaraj Urs Road. As against this, there are no takers for first floor and quite a number of premises are lying vacant.

Anil Kumar, managing director of India Estate, a leading real estate agency of Mysore, agrees with Subba Rao and says property values in Mysore had peaked to new highs about six months ago, but has seen correction now and stabilised at the present rates. As against Rs 11,000 to Rs 14,000 per square feet on Devaraj Urs Road, the rates are between Rs 8,000 and Rs 9,000 on Sayyaji Rao Road. In the leading extension areas like Jayalakshmipuram it is Rs 2,000 - Rs 3,500 and Kuvempunagar Rs 2,000 - Rs 2,500.

Subba Rao adds, "We cannot say how long this rate will last in Urs Road. If the commercial complex proposed by the MCC at Makkaji Chowk becomes a reality, at least after 2-3 years, the demand in Devaraj Urs Road may fall. But till then, Urs Road is the dominant player among commercial properties in Mysore."