Realty prices slide in Mysore

Realty market in Mysore has corrected 20 per cent over the last 2-3 months, and a number of factors have affected investments in land and built-up property.

The correction is more visible in the land value, with more plots coming into the market.

The reasons attributed to this sudden scenario by property owners, dealers and investors are chiefly increase in interest rates, permission granted for land conversion and a consequent fall in investments from Bangalore, more sites coming into the market, and land-owners' reluctance to sell property expecting higher prices in future.

Sathyappa, a broker, says a plot in Vijayanagar IV stage is being quoted at Rs 18 lakh now as against Rs 22-25 lakh a few months ago. Endorsing his opinion, another agent, Mahadevaiah, adds that built-up property too has witnessed a 10-15 per cent price fall, while land value has taken a beating, from Rs 30-35 lakh to Rs 28 lakh.

Another agent, Ramappa says the fall in site value is anywhere between 15 per cent and 20 per cent. He agrees that land owners are not coming forward to sell their lands.

Instead of Mysore, people are now looking towards investments in and around Ramanagaram, an hour's drive from Bangalore, with chief minister H D Kumaraswamy showing a keen interest in developing the area. Most investments are coming from Bangalore.

The recent grant of permission for land conversion is another reason for the fall in investments and prices in Mysore. Land conversion is yet to be allowed in Mysore.

The agents back their argument with the ease in site availability by pointing out to the situation in Vijayanagar 4th stage, the southern part of the city. It has about 18,000 sites, but hardly 10-12 houses have come up.

The prices, they say will fall further with developers of private layouts offering sites when the government allows land conversion.

"Land value has fallen up to 20 per cent," agrees former chairman of Builders' Association of India, Mysore Branch, K Sriram.

"But the market is bound to bounce back," he says pointing out to a survey by the Confederation of Indian Industry estimating 40,000 job additions in the IT sector alone in Mysore.

"This will definitely have an impact on the housing situation in the city," Sriram says.