Guide for Mysore Commercial Real Estate Investment

Mysore or Mysuru lies in the southern region of Karnataka. This city is notable for its historical palaces and temples, which attract many tourists every year. Tourism and information technology are the predominant industries in Mysore. Its planned industrial growth for many years has made Mysuru the 5^th best city for business activities. The main industries here are sandalwood carving, bronze work, weaving, salt and lime production, etc.

Since 2003, IT companies began emerging in Mysuru, contributing US$220 million to this city’s growth. Furthermore, this Karnataka city is emerging as a real estate hotspot owing to its rapid growth.  

Read this article to the end to know about the scope of high ROI on investing in commercial real estate in Mysuru 

Top Reasons to Invest in Mysore Commercial Real Estate

Here are a few important reasons why you should consider investing in commercial properties in Mysuru:

• Booming IT Sector

Mysore hosts efficient infrastructure to support the sustenance of IT companies. Mysore also ranks as Karnataka’s second-largest exporter of software.This makes way for growing demands for office spaces in Mysore. As a result, investors can get good ROI from commercial properties. 

• Growth stage:

As a Tier-2 city, Mysore offers promising opportunities for high returns on investing in commercial real estate. Spaces likeretail stores, restaurants, hotels and office spaces are in high demand here. Investing in these properties will bring you substantial returns. However, you must do proper research before investing in commercial properties in Mysuru. 

Commercial Real Estate Investment Opportunities in Mysore

Here are some great locations for investing in commercial properties in Mysore:

• Hebbal

This is an industrial-cum-residential suburb in Mysore. Prominent housing localities surround Hebbal. Well-maintained roads run between these regions and Hebbal. 

Mysore Junction and Belagula Railway station are the nearest railway stations to Hebbal. Furthermore, GRS Fantasy Park is a popular tourist attraction in this region. 

As an industrial suburb, Hebbal hosts various tech parks like Renaissance First Face Tech Park and Silver Spirit Tech Park. In addition, IT companies like Infosys, L&T and Wipro have offices nearby. 

Prices for commercial properties in Hebbal vary from ₹78 lakhs to ₹2.2 crores.

• Hootagalli

Hootagalli is another suburban part of Mysuru. This place is nearby to Hebbal. Hootagalli’s economy primarily depends on industries, IT companies and educational institutes.

The Mysore-Bantwal National Highway connects Hootagalli to Central Mysore. Major IT companies such as Excelsoft, Infotech, and Wipro have offices here. Commercial property prices in Hootagalli range from ₹6 crore to ₹11.33 crore. 

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Things to Consider before Buying a Commercial Property in Mysore

Here are specific points an investor must keep in mind before investing in commercial properties in Mysuru:

• Lease Structure

A lease is a financial document that binds two parties while trading properties. A tenant can hold the property by paying a certain amount for a stipulated time. While purchasing a commercial property, you must be fully aware of the conditions stipulated in the lease document. Consider seeking legal advice to fully comprehend the terms and conditions of the lease structure.

• Location and Connectivity

As an investor, you must conduct thorough research about the property’s location and amenities. You should assess how accessible the commercial property is from the nearest railway stations or bus stops. If the property is an office space or hotel on the city’s outskirts, make sure there are proper roads and transportation. 

These features will make your commercial property more accessible to tenants and bring you a higher ROI. 

•  RERA Authentication

The Real Estate Regularity Authority (RERA) Act 2016 monitors transparency in the real estate business by setting up a RERA body in each state. 

You can search for your shortlisted properties in the RERA portal of the Karnataka government’s official website. This will help you ensure the property’s authenticity before investing.

• Builder Credibility

When investing in an under-construction property, analyse the builder’s credibility before investing. Here, you need to look into the builder’s past works. Also, consider cross-verifying these documents by contacting investors involved in their past projects. This will help you make an informed decision before investing your money in commercial real estate. 

Stamp Duty in Mysore

The table below shows the stamp duty one needs to pay on selling commercial property in Mysore.

Registration Charges in Mysore

The table below displays the registration charges applicable to commercial properties.

Also Read: Guide for Rohini Commercial Real Estate Investment

Mysore Commercial Real Estate Sector: What’s the Forecast?

As a tier 2 city, Mysuru is more affordable compared to nearby metropolitan cities. This brings in growing demands for commercial and residential places in the city. 

Furthermore, it is one of the few places still offering investors vacant lands to set up their commercial businesses. As a result, investors can use this opportunity to invest in office places or hotels per their goals and budget. 

It usually takes 3 hours to travel to Bengaluru from Mysuru. However, the ongoing Expressway project will likely cut down this travel time. Thus, it will make Mysuru more accessible from Bengaluru. 

The Mysore Master Plan, 2031 proposes developing international convention centres, lodging facilities and a film city near Mysore Airport. This will significantly boost the real estate market in the days to come.  Hence, we see room for growth in the real estate space of Mysore.

Also Read: Guide for Vijayawada Commercial Real Estate Investment

Commercial Real Estate vs Other Asset Classes

Here are some points of differences between commercial real estate and other asset classes: 

Commercial Real Estate vs Bonds

Both bonds and commercial real estate are reliable sources of passive income. However, bonds have comparatively higher liquidity than commercial real estate. In contrast, commercial real estate offers higher returns.

Commercial Real Estate vs Stocks and Mutual Funds

Owing to their volatile nature, stocks and mutual funds offer high returns. However, investors can suffer significant losses if they do not invest wisely. On the other hand, commercial real estate promises relatively stable returns at lower risk. 

Commercial Real Estate vs Gold

Commercial real estate offers higher returns than gold. However, buying and selling gold is much easier. As a result, gold has a more liquid market than commercial properties. 

Commercial Real Estate vs Residential Real Estate

Commercial real estate is more expensive than residential real estate. Therefore the former brings in higher returns. However, due to their soaring prices, commercial real estate suffers more credit risk than the latter. 

The following table shows a comparative analysis of the above assets based on their liquidity, volatility, ticket price, and risks.

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Steps to Invest in Commercial Real Estate in Mysore

Step 1: Finalise the budget you are willing to allocate for your real estate investment.

Step 2: Conduct thorough research on potential locations and properties in Mysuru to understand their future prospects.

Step 3: Shortlist a few commercial properties that fit your budget.

Step 4: Opt for on-site research to closely analyse the property, the area and the locality. Consider seeking help from a real estate advisor to know about prospects in the area.

Step 5: Finalise a commercial plot or property that suits your budget and investment goals.

Step 6: Check for documents like Title Deed, Foundation Certificate, and Property Assessment Extract.

Step 7: Complete the formalities regarding stamp duty and registration charges to transfer the property under your name.

Step 8: You need to pay service fees to brokers or real estate consultants for availing their services.

Step 9:  Cover your newly purchased property with an insurance plan. 

Final Words

If you plan to invest in commercial real estate in Mysore and earn substantial returns, remember to do your due diligence and take help from an expert, if possible. Also, you should remember to adhere to the RERA guidelines while investing in commercial real estate in Mysore. This will protect you from falling victim to any form of fraudulent activity. 

Frequently Asked Questions