MYSURU: The base price set by the Mysuru Development Authority (MDA) for sites in the prestigious Vijayanagar Stage IV, Phase II, has had a direct and negative influence on property prices in west Mysuru, according to local developers. They argue that inflated prices have created a bubble, misleading many into believing there is a boom in the real estate sector.
The MDA initially pegged the base price at Rs 8,000 per square foot for premium corner plots, which has since been increased three times, establishing a new pricing benchmark and prompting property owners in the affluent area—comprising around 18,000 sites—to raise their prices accordingly.
Currently, one property owner is offering a 2,400 sq ft commercial plot in this locality for an astounding Rs 3.7 crore, equating to Rs 15,500 per sq ft. Another seller is listing a 20×30 ft duplex house for Rs 1 crore, which amounts to approximately Rs 9,500 per sq ft.
Srihari D, president of the Mysuru chapter of the Confederation of Real Estate Developers’ Associations of India (CREDAI), stated to TOI that recent auctions conducted by the MDA have affected real estate prices for both residential and commercial units.
Srihari expressed concerns about the sudden surge in prices. He noted that a buyer paying Rs 3.7 crore would also need to factor in 8% stamp duty and invest at least Rs 1.2 crore for construction. Given such a significant investment, the buyer’s return on investment through rental income remains uncertain.
Another developer, Abhishek Hegde, mentioned that rent for ground floor commercial plots in central Mysuru hovers around Rs 60 per sq ft, with prices decreasing for first and second floors.
On average, a commercial property owner can earn about Rs 1.2 lakh monthly by renting out a 2,000 sq ft space, resulting in an average return on total investment of around 5%.
